{"id":6656,"date":"2023-03-25T10:06:01","date_gmt":"2023-03-25T10:06:01","guid":{"rendered":"https:\/\/imsfund.com\/?p=6656"},"modified":"2023-03-25T10:06:01","modified_gmt":"2023-03-25T10:06:01","slug":"bofas-hartnett-sees-commercial-real-estate-as-the-next-shoe-to-drop","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2023\/03\/25\/bofas-hartnett-sees-commercial-real-estate-as-the-next-shoe-to-drop\/","title":{"rendered":"BofA&#8217;s Hartnett sees commercial real estate as the &#8216;next shoe to drop&#8217;"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<p><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"xyz-data\">Commercial real estate could be the next danger spot in the wobbly U.S. financial sector, according to Bank of America. One warning sign: Spreads for commercial mortgage-backed securities are at their widest compared with Treasurys since May 2020, said investment strategist Michael Hartnett. &#8220;CRE widely seen as next shoe to drop as lending standards for CRE loans to tighten further,&#8221; Hartnett wrote in his weekly &#8220;Flow Show&#8221; report of where market money is gravitating. The last Federal Reserve Senior Loan Office Opinion Survey , in January, noted &#8220;significant net shares of banks&#8221; that reported tightening lending standards for commercial loans. At the same time, the survey noted &#8220;weaker demand for loans from firms of all sizes.&#8221; While the next SLOOS report won&#8217;t come until early May, markets are expecting the trend cited in January to accelerate. That comes at a time when the Federal Reserve continues to raise interest rates , making conditions more difficult. Hartnett said the combination is dangerous as the banking industry undergoes tumult . He noted that during the savings and loan crisis in the late 1980s and early 1990s, the Fed didn&#8217;t start cutting until weekly jobless claims surged and nonfarm payrolls declined, meaning the central bank could keep policy tight despite weakening credit conditions. &#8220;In this recession add CRE to coming toxic recession mix,&#8221; Hartnett said. His comments come as the Fed reported strong demand for emergency lending programs it enacted earlier this month. The Bank Term Funding Program reported $53.7 billion in loans over the past month , while the discount window saw $110.2 billion. The central bank&#8217;s balance sheet has grown by more than $390 billion since the BTFP was implemented and the discount window expanded.<\/span><\/span><\/span><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2023\/03\/24\/bofas-hartnett-sees-commercial-real-estate-as-the-next-shoe-to-drop.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Commercial real estate could be the next danger spot in the wobbly U.S. financial sector, according to Bank of America. One warning sign: Spreads for commercial mortgage-backed securities are at their widest compared with Treasurys since May 2020, said investment strategist Michael Hartnett. &#8220;CRE widely seen as next shoe to drop as lending standards for [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":6657,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107182099-16742554542023-01-20t222411z_1342272313_rc2muy9i2m41_rtrmadp_0_usa-debt.jpeg?v=1679670280&w=1920&h=1080","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-6656","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/6656","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=6656"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/6656\/revisions"}],"predecessor-version":[{"id":6658,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/6656\/revisions\/6658"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/6657"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=6656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=6656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=6656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}