Monday, March 03, 2008
goldman's CRE call
As the economy wobbles and financing costs rise because of the credit crunch, commercial-real-estate values are starting to slide, with analysts at Goldman Sachs Group Inc. projecting a decline of 21% to 26% in the next two years. That means misery for securities firms with exposure to commercial-real-estate loans and commercial- mortgage-backed securities.
deterioration in commerical real estate of this kind will be an especially bitter pill for regional banks.