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Bad real estate loans threaten U.S. banks again


Leerstehende Shopping-Center gefährden US-Immobilienkredite. Quelle: ap

Empty Shopping Center endanger U.S. mortgages. Source: AP

NEW YORK. The U.S. threatens a renewed strengthening of the banking crisis. 2008/2009 was the collapse of the market for single family homes of the reason for the collapse of many banks, there are now losses for commercial property mortgage. Are affected mainly smaller banks. Because the boom built in hotels, apartment complexes and shopping centers with ever-rising vacancy rates have to fight, their builders slide rows into insolvency. The donors lose their deployment.

In May, reached the default rate for bonds that are backed by commercial real estate (CMBS), a new record. 8.42 percent of these papers had become distressed in the past month, three times as many a year ago, told the service industry Trepp. "And the worst is still to come," commented Howard Chin CMBS specialist from the Guardian Life Insurance numbers. He expects because of the prevailing credit crunch with a further sharp rise in defaults.

It is distinguished from also turn out that not only more and more packaged in CMBS loans. The resulting losses that banks and other owners of these papers are thus, also larger than previously thought, as a recently published study by the rating agency Fitch points out. If packed in the past, a credit in such a structured loan and the underlying property through bankruptcy later slipped into foreclosure, the average loss of the investors was 37 percent. Fitch has now calculated that the value losses in 2009 reached the record level of 57 percent. The reason: In the current environment, sales of homes more difficult and costly than before. The Fitch analysts anticipate that the amount of losses by 2011 will remain at the current level.

The $ 700 billion market for severe CMBS is the statistically most recognized part of the outstanding commercial mortgages worth roughly three trillion dollars. These papers are largely recorded in the balance sheets of banks. Therefore can be drawn from these data to draw conclusions regarding the state of bank balance sheets.

Since the beginning of the financial crisis in the U.S. collapsed over 200 banks. This year there were 78 so far mostly smaller institutions. Increasingly, because of losses of failing mortgages on commercial properties of the ground. For, unlike the big banks on Wall Street, the small houses, the losses do not offset by gains from the capital markets business. Experts fear the crisis could cost up to 3000 of the 8000 Institute in the U.S. existence.