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☆ Blackstone's Nadeem Meghji: Can't paint CRE space with a broad brush due to big bifurcation
▼ + stars: | 2023-06-29 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBlackstone's Nadeem Meghji: Can't paint CRE space with a broad brush due to big bifurcationNadeem Meghji, Blackstone's head of real estate for the Americas, joins 'Squawk on the Street' to discuss the current commercial real estate space, whether in-office challenges have made them reconsider their exposure, and more.

Persons: Blackstone's Nadeem Meghji, Meghji

☆ Factbox: Big banks stand strong against Fed's commercial real estate gloom
▼ + stars: | 2023-06-28 | by ( Michelle Price | ) www.reuters.com time to read: +3 min

WASHINGTON, June 28 (Reuters) - Big U.S. banks' commercial real estate portfolios put in a surprisingly good performance during the Federal Reserve's annual health checks, with losses declining slightly on last year, the central bank said on Wednesday. With risks growing in the commercial real estate (CRE) sector globally, analysts and investors were looking to the Fed's "stress tests" for more insight on how exposed the country's lenders are to falling real estate prices. Commercial real estate (CRE), especially offices, has been hit by interest rates hikes and workers choosing to stay at home. The Fed's annual bank "stress tests" established following the 2007-2009 financial crisis probe how lenders would fare against an extreme scenario: a 40% decline in commercial real estate values. The average projected CRE loan loss rate across the group was 8.8% of average loan balances, compared with 9.8% last year, the Fed said.

Persons: Goldman Sachs, Morgan Stanley, Charles Schwab, Michelle Price, Pete Schroeder, Stephen Coates Organizations: Federal, Moody's Investors Service, Bank of America Corporation, of New York Mellon Corporation, Barclays US, BMO Financial Corp, Financial Corporation, Charles, Charles Schwab Corporation, Citigroup Inc, Financial Group, Inc, Suisse Holdings, DB USA Corporation, Goldman, Goldman Sachs Group, JPMorgan Chase & Co, T Bank Corporation, Northern Trust Corporation, PNC Financial Services Group, RBC US Group Holdings, Street Corporation, US Holdings, Truist Financial Corporation, UBS, Holding, . Bancorp, & Company, Thomson Locations: Big U.S

☆ Here are Friday's biggest analyst calls: Meta, Apple, Uber, Target, SoFi, Nike, Amazon, GM and more
▼ + stars: | 2023-06-23 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Here are Friday's biggest calls on Wall Street: Morgan Stanley reiterates Apple as overweight Morgan Stanley said in a note Friday that it sees several reasons for share outperformance. Morgan Stanley upgrades Evotech to overweight from equal weight Morgan Stanley said the drug discovery and development company is well-positioned for artificial intelligence. As such we are upgrading to Market Perform with a $44 price target." Morgan Stanley reiterates Snowflake as overweight Morgan Stanley said it's bullish heading into the company's upcoming investor day. Barclays reiterates Uber as overweight Barclays raised its price target on Uber to $70 per share from $57 and says it's well-positioned.

Persons: Morgan Stanley, Apple, Stephens, KeyBanc, Wells, Armour, Wells Fargo, JPMorgan Chase, Valvoline, underperform SVB, Wayfair, Snowflake, it's, Uber, Roth, Bernstein, Jefferies Organizations: Deutsche Bank, Nike, Sovos Brands, UAA, Outsized NA, JPMorgan, Global Products, Securities, Bed, Barclays, Amazon, Citi, General Motors Locations: China, Italian, downgrades, EBITDA

☆ As regional bank stock rally regains steam, investors should watch out for these spoilers
▼ + stars: | 2023-06-13 | by ( Christina Cheddar Berk | ) www.cnbc.com time to read: +6 min

With the Federal Reserve expected to pause its rate-hiking campaign at this week's meeting, regional banks stocks have made a comeback, but that doesn't mean all the trouble is in the rearview mirror. Still, the upward march resumed on Tuesday, begging the question of what's ahead for bank stocks. As the Treasury sells tens of billions of dollars in Treasury bills, it could pressure bank deposits. Graseck predicts that a reacceleration of deposit outflows would snuff out the bank stock rally. In addition, regional bank earnings estimates, which had been cut severely in March and April, had leveled off in May.

Persons: Jack Ablin, Ablin, outflows, SVB, Aditya Bhave, Bhave, Morgan Stanley, Betsy Graseck, Graseck, Nicholas Colas, Huntington Bancshares, Matt O'Connor, KeyCorp, Albin Organizations: Federal Reserve, Fed, Cresset, Silvergate, Silicon Valley Bank, Signature Bank, PacWest Bancorp, Bank of America, Treasury, DataTrek Research, Citizens Financial Group, Truist, Morgan Stanley U.S, Financials, CRE Conference, Deutsche Bank, TFC Locations: Silicon, Federal, U.S, 2Q23, New York

[1/5] Customers stand next to a counter at a Starbucks' outlet at a market in New Delhi, India, May 30, 2023. Starbucks plans to open more stores in smaller towns, said an industry source, who spoke on condition of anonymity. Soon after Starbucks' May launch of $3.33 milkshakes, designed to attract children, Third Wave launched its own range, a fifth cheaper at $2.71. He saw Starbucks' cheaper, small-sized drinks as a response to competition in "an incredibly price-sensitive market". "Going deeper into smaller cities, beyond the metros, is the only way to grow," said Ankur Bisen, head of retail at India's Technopak Advisors.

Persons: Sushant Dash, Tim Hortons, Devangshu Dutta, We've, chai, Chas Hermann, Sushant Goel, Matt Chitharanjan, Dash, Ankur Bisen, Sriram, Aditya Kalra, Anushree Fadnavis, Varun Vyas, Euan Rocha, Miyoung Kim, Sophie Yu, Hilary Russ, Clarence Fernandez Organizations: REUTERS, MUMBAI, Blue, Starbucks, Tata Group, BET, CHAI, Wave, Third, Reuters, Blue Tokai, India's Technopak, Thomson Locations: New Delhi, India, American, DELHI, U.S, Blue Tokai, China, Singapore, United States, Bengaluru, Delhi, Aurangabad, Beijing, New York

☆ JPMorgan upgrades this regional bank stock with limited exposure to commercial real estate, sees 25% gain
▼ + stars: | 2023-06-05 | by ( Brian Evans | ) www.cnbc.com time to read: +1 min

JPMorgan thinks there's a buying opportunity in regional bank Valley National. The bank upgraded Valley National Bancorp to overweight from neutral Monday with a $10 per share price target. Analyst Steven Alexopoulos noted that Valley National's exposure to the commercial real estate market is reasonably below peers which could shield the firm from loan headwinds. Valley National shares have tanked more than 29% in 2023. The stock dropped with the broader regional banking space after the collapse of Silicon Valley Bank and Signature Bank earlier this year.

Persons: Steven Alexopoulos, Alexopoulos, —, Michael Bloom Organizations: JPMorgan, Bancorp, Silicon Valley Bank, Signature Bank Locations: Silicon

☆ Here are Monday's biggest analyst calls: Apple, Tesla, Meta, Micron, Bowlero, Nike, Disney and more
▼ + stars: | 2023-06-05 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Oppenheimer reiterates Meta as outperform Oppenheimer raised its price target on the stock to $350 per share from $285 and said it's well-positioned. Deutsche Bank upgrades Rio Tinto to buy from hold Deutsche Bank said shares of the metals and mining company are very attractive. Morgan Stanley reiterates Disney as overweight Morgan Stanley lowered its price target on the stock to $110 from $120 but said it's standing by the shares. " Morgan Stanley downgrades Dollar General to equal weight from overweight Morgan Stanley said in its downgrade of Dollar General that it sees too many risks right now. Morgan Stanley upgrades Equitrans Midstream to overweight from underweight Morgan Stanley said the energy company is better positioned after the debt ceiling raise.

Persons: Tesla, Canaccord, Oppenheimer, it's, TD Cowen, Cowen, Bernstein, it's bullish, Needham, Coinbase, Morgan Stanley, Disney, KeyBanc, Jefferies, Wolfe, Wells, Wells Fargo, Estee Lauder, Morgan Stanley downgrades, Equitrans, Stifel, Brett Parker, JPMorgan Chase Organizations: U.S, Formula, Deutsche Bank, Rio Tinto, Disney, Media, Target, Costco, Jefferies, Oracle, Palo Alto Networks, Alpha, Citi, Micron, Wells Fargo, Nike, Bank of America, Apple, of America, Pipeline, Barclays, Meta, JPMorgan Chase, JPMorgan Locations: China, Rio, Lido, Binance, Palo, SKX

NEW YORK, May 31 (Reuters) - Wells Fargo & Co's (WFC.N) Chief Executive Officer Charlie Scharf said on Wednesday that there will be losses in the office loan space but the lender was proactively managing its portfolio. But in the context of the overall portfolio and the overall size of our loan portfolio with the company, we are not overly concentrated in office (loan space)," Scharf said while speaking to investors at a conference. The bank's outstanding commercial real estate (CRE) loans stood at $154.7 billion, or 16% of total loans, with $35.7 billion in office loans at the end of March. Office loans have posed concerns for some lenders as property values decline and more borrowers default on their loans. The San Francisco-based bank set aside $1.21 billion in the first quarter to cover potential loan losses, compared to $787 million a year earlier.

Persons: Charlie Scharf, " Scharf, Scharf, Banks, We've, Wells Fargo, Nupur Anand, Saeed Azhar, Jason Neely, Nick Zieminski Organizations: YORK, U.S, Regulators, JPMorgan Chase &, Bank of America Corp, Citigroup Inc, Thomson Locations: San Francisco, New York

☆ Blackstone, the massive private-equity firm, just wants to be your friendly, neighborhood lender
▼ + stars: | 2023-05-25 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Your friendly neighborhood lender, BlackstoneWhat's the first thing that pops into your head when you think of a regional bank? Nouriel Roubini, the famed economist known as "Dr. Doom" isn't too optimistic about the future of regional banks. Never one to miss a chance to make money, Blackstone CEO Stephen Schwarzman said his firm can "fill the void" left by regional banks tightening up their lending activity. Regional banks happen to be one of the biggest lenders in commercial real estate. Doom' is feeling bearish on regional banks.

☆ Analysis: Overexposed US regional banks could sell commercial property loans
▼ + stars: | 2023-05-17 | by ( Matt Tracy | ) www.reuters.com time to read: +5 min

Still, previously unreported data from New York-based real estate data provider Trepp, shared with Reuters, show many regional banks' holdings exceed thresholds stipulated by regulators. While big banks have recently warned about CRE exposure, the new Trepp data underscores how acute and widespread the problem is across the banking sector. The regulatory guidance requires that banks exceeding these thresholds "should employ heightened risk management practices," including potential sales of specific loans. Meanwhile, New York Community Bancorp (NYCB.N) and Flagstar Bank [RIC:RIC:FBCANK.UL] were among the top five banks listed by Trepp that exceeded the CRE loan threshold. In Tuesday congressional testimony, FDIC chair Martin Gruenberg warned CRE loan portfolios "face challenges" should market conditions persist.

☆ Commercial real-estate prices could tumble 10% from their peak and defaults are sure to increase, Moody's chief economist says
▼ + stars: | 2023-05-17 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Expect commercial real-estate prices to plunge 10% from their peak, along with a wave of defaults, Moody's chief economist said. "Lots more CRE price declines are coming, with prices expected to be off 10% peak-to-trough by mid-decade," Mark Zandi said. Stress has been building in the commercial property industry as investors fret it could be the domino to fall in the US economy. "Lots more CRE price declines are coming, with prices expected to be off 10% peak-to-trough by mid-decade," he said. "CRE loan delinquencies and defaults are sure to increase, causing agita for the banking system.

☆ Investors would be wise to heed these lessons from the 'retail apocalypse' as office values reset
▼ + stars: | 2023-05-14 | by ( Christina Cheddar Berk | ) www.cnbc.com time to read: +7 min

Still, it is also true that a lot of disruption occurred in between the events that prompted the "apocalypse" chatter and the firmer ground where retail real estate stands today. Recalling how these events played out is helpful in understanding the situation facing U.S. office properties. For office buildings, the pandemic knocked things out of whack. The same idea is being discussed for office buildings, but one-size will not fit all. There may be no surprise that there has been a huge drop-off in the number of loans with office properties as collateral since March.

☆ Private-credit firms see opportunity as banks tighten lending
▼ + stars: | 2023-05-10 | by ( Lisa Pauline Mattackal | ) www.reuters.com time to read: +2 min

May 10 (Reuters) - Private-credit firms are eyeing fresh opportunities from a potential borrowing squeeze in the United States as battered regional banks tighten lending after the turmoil in the sector, according to fund managers and investment strategists. Such lenders see commercial and residential real estate as particularly attractive, given the prominence of regional banks in these sectors. Regional U.S. banks accounted for about 70% of outstanding loans to the commercial real estate (CRE) sector alone, according to Capital Economics. "Signature was one of the biggest providers of real estate lending in the New York area, commercial real estate is very vulnerable ... as a lender you want to be on the other side of that," Handa said. Many private credit funds have plenty of excess funds, or "dry powder" to invest, said Matt Malone, head of investment management at private investment management firm Opto Investments.

☆ Citi upgrades this financial giant, sees sharp gains ahead after banking crisis
▼ + stars: | 2023-05-04 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

It's time to buy Deutsche Bank shares as the beaten-down bank shows signs of a strong recovery, according to Citi. Analyst Andrew Coombs upgraded Deutsche Bank to buy/high risk from neutral/high risk, saying the stock has further upside after the firm's stronger-than-expected first quarter results . "Deutsche Bank is one of the most de-rated banks YTD, yet the 1Q23 results demonstrated potential for further consensus earnings upgrades. In addition the company provided additional reassurance on the funding & liquidity position of the bank and on US CRE exposure," Coombs wrote. DB 1D mountain Deutsche Bank shares 1-day Deutsche Bank last week reported a first-quarter net profit of 1.158 billion euros, or around $1.28 billion.

☆ I use ChatGPT and it's like having a 24/7 personal assistant for $20 a month. Here are 5 ways it's helping me save time and make more money.
▼ + stars: | 2023-05-03 | by ( Robin Madell | ) www.businessinsider.com time to read: +10 min

She says using ChatGPT is like having an assistant and gives her more time to focus on her children. It also helps me answer client questions in a contextually appropriate way and has afforded me more time to concentrate on my kids' extracurriculars or helping them with homework. I've created a list of common questions that potential clients ask about particular properties, buildings, or locations, such as "What's the square footage?" And once we receive a response from the potential client, we can forward their information to the relevant team for a more personalized follow-up. I'm able to engage with a larger number of potential clients at any given time.

☆ I use ChatGPT and it's like having a 24-7 personal assistant for $20 a month. Here are 5 ways it's helping me save time and make more money.
▼ + stars: | 2023-05-03 | by ( Robin Madell | ) www.businessinsider.com time to read: +10 min

She says using ChatGPT is like having an assistant and gives her more time to focus on her children. It also helps me answer client questions in a contextually appropriate way and has afforded me more time to concentrate on my kids' extracurriculars or help them with homework. I've created a list of common questions that potential clients ask about particular properties, buildings, or locations, such as, "What's the square footage?" I'm able to engage with a larger number of potential clients at any given time. Generates data reportsChatGPT can generate data reports that allow me to analyze the performance of particular client interactions, as well as outreach and marketing campaigns.

☆ Wolfe double-upgrades this regional bank stock that's an 'attractive place to hide'
▼ + stars: | 2023-05-03 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Prosperity Bancshares is a safe pick in a sector that's been recently defined by risk, according to Wolfe Research. Analyst Bill Carcache double-upgraded the regional bank stock to outperform from underperform, saying the bank has "relative safety on high ground" amid sector turmoil that was initially ignited by the closure of Silicon Valley Bank in March and reignited by the auction won by JPMorgan for First Republic Bank this week. His new target implies the stock could rally 15% from Tuesday's close. That's of increasing importance as industry insiders expect more stringent regulations following the recent bank failures, he said. He said that the bank has historically had fewer write-offs than regional peers.

☆ Five reasons why regional bank stock investors are worried
▼ + stars: | 2023-05-03 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

Many regional banks, like Zions, KeyCorp and US Bancorp, were trading at their lowest levels since the Great Financial Crisis in early 2009. Repricing of commercial real estate (CRE) loans is a major issue, given how top-heavy many regional banks are in this space. "Owners of bank stocks are asking, 'Why am I here?,'" one bank analyst who asked to remain anonymous told me. He has a point: the SPDR Regional Bank ETF (KRE), a basket of large regional banks, began trading in mid-2006. You heard right: a basket of regional banks is 20% lower than 17 years ago.

☆ Warren Buffett's business partner warns of a credit crunch in commercial real estate - and says it's a tough time to be an investor
▼ + stars: | 2023-05-02 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Charlie Munger warned of a nationwide pullback in lending to the commercial real estate industry. Warren Buffett's partner said investors face stiff competition and an interest-rate headwind. He flagged that many of them have suffered painful blows to their loan portfolios from declines in real estate prices, and pointed to office buildings and shopping centers as particular headaches. The collapse of Silicon Valley Bank, Signature Bank, and First Republic Bank in recent weeks has stoked concerns of a wider credit crunch. Real estate investors rely heavily on debt, which has grown more costly thanks to rising interest rates.

☆ First Republic collapse sparks sector-wide regional bank shares sell-off
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of PNC Bank, a subsidiary of PNC Financial Services Group, is seen on the window of a branch in Washington, U.S. April 30, 2023. REUTERS/Ashraf FahimMay 1 (Reuters) - Shares of regional lenders fell in morning trading on Monday following the collapse of First Republic Bank (FRC.N), the third major casualty of the biggest crisis to hit the U.S. banking sector since 2008. Among individual movers, Citizens Financial Group (CFG.N), PNC Financial Services Group (PNC.N), Truist Financial Corp (TFC.N) and U.S. Bancorp (USB.N) fell between 2.2% and 7%. While investors digested the quick deal for First Republic's assets with a pinch of salt, the regulator-engineered rescue effort sparked a sell-off in the mid-cap bank sector. Global banking has been rocked by the closure of Silicon Valley Bank and Signature Bank in March.

The hedge funds said they can share ideas, but cannot reveal their trading positions for regulatory reasons. Reddy said he preferred senior unsecured bank debt, that allowed bondholders payment ahead of some other creditors in the event of an insolvency. Taking bearish positions on banks that lend to smaller and medium sized firms could prove opportunistic if the economy weakens, he added. Trend-wise the Japanese yen should continue to weaken," said Chua, noting that central banks in Asia have slowed or paused rate hikes. Insurers, which holds commercial mortgage-backed securities and property, will likely feel pressures on CRE, he said.

☆ The bad loan term that's back for banks trying to spot a recession
▼ + stars: | 2023-04-23 | by ( Tim Mullaney | ) www.cnbc.com time to read: +4 min

If there wasn't enough banking jargon to blind you, it's time to learn a new piece of it: Welcome to the industry's era of the "criticized loan." "Criticized loans could be paying or performing but a loan could be singled out because of its collateral." At Bank of America, criticized loans to office building projects rose to $3.7 billion out of $19 billion in office loans. But office buildings represent only a quarter of the bank's commercial real estate loans, and all CRE is just 7% of the bank's total loans and leases. "It's almost impossible for us to see office [losses] more than 4 or 5 percent of office loans.

German specialised property lenders such as Aareal Bank (ARLG.DE), Deutsche Pfandbriefbank (PBBG.DE) and Berlin Hyp, have a bigger concentration of real estate exposure, analysts added. Blackstone (BX.N) recently blocked withdrawals from its $70 billion real estate income trust after facing a flurry of redemption requests. Open-ended real estate funds in Britain have also battled to meet strong demand for redemptions. In Europe, CRE exposure for smaller banks, more at risk of deposit flight, is estimated at under 30% of all loans, Capital Economics said. "On the other, real estate owners themselves are going to face quite material increase in costs."

☆ Premarket stocks: JPMorgan steals the show as banks lift curtain on earnings
▼ + stars: | 2023-04-17 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

All beat estimates: PNC (PNC) and Wells Fargo (WFM) by about 9%, Citi by around 13% and JPMorgan (JPM) by nearly 21%. PNC stock also felt the pressure. Before the Bell spoke with Steve Sosnick, chief strategist at Interactive Brokers, to discuss Friday’s big bank earnings and explain that stock discrepancy. I’ve always complained about banks reporting their quarterly earnings first because they’re extraordinarily idiosyncratic. Why did JPMorgan stock outperform its competitors?

☆ Landlords pumped billions into apartment buildings during the pandemic. That bet could now go horribly wrong.
▼ + stars: | 2023-04-16 | by ( Daniel Geiger | ) www.businessinsider.com time to read: +4 min

Big money investors pumped billions into buying up apartment buildings in the pandemic era. But fault lines have emerged for investors who paid top dollar for assets that depended on substantial rent increases and persistent low interest rates to achieve profitability. In those years, investors purchased $355.5 billion and $299.2 billion worth of apartment buildings, according to MSCI — unprecedented sums that far surpassed the previous $194 billion record of multifamily sales in 2019. "It's early, but it's going to become a bigger story, especially if interest rates stay high and lending standards are tight," said Alan Todd, the head of commercial-mortgage-backed-securities strategy at BofA Global Research. As these short-term debts come due, they will be difficult to swap with commensurately sized loans today, because of the falling values, higher interest rates, and lender caution.

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