"Bank Stocks Tank as US Commercial Real Estate Faces Dark Days"
US commercial real estate and the banks holding the loans are facing dark days ahead as uncertainties loom over the size of potential losses and how they will be managed. The office real estate sector is severely impacted by work-from-home changes, leading to high vacancies and tenants demanding lower rents. With an estimated $1.2 trillion of commercial mortgages set to mature this year and next, banks are at risk, especially small/regional ones, as they lack the capacity to absorb significant losses. The situation has sparked concerns in the bond market, reflecting the precariousness of the current scenario.