PIMCO expects more US regional bank failures: "The real wave of distress is just starting”

[forex4you]

PIMCO expects more US regional bank failures: "The real wave of distress is just starting"

Bloomberg (gated) had this report that has seemed to slip by a little too quietly. Bloomberg interviewed Pimco's head of global private commercial real estate team.

Pacific Investment Management Co (PIMCO) expects more regional bank failures in the US because of a "very high" concentration of troubled commercial real estate loans on their books:

• 
  
  "The real wave of distress is just starting" for lenders to everything from malls to offices
• high borrowing costs have hammered valuations and triggered defaults
• leaving lenders stuck with assets that are tough to sell
• larger banks have been disposing of some of their higher quality assets first to avoid deeper losses ...
  
  "As stressed loans grow due to maturities, however, we expect that banks will start selling these more challenged loans to reduce their troubled loan exposures"

The link to Bloomberg is here if you can access it. If you don't have access to Bloomberg and this scary report I guess the best thing to do is just buy more Nvidia? Seems to have worked regardless of everything else so far (me with the kiss of death for NVDA ;-) )

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: PIMCO expects more US regional bank failures: "The real wave of distress is just starting"

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