_{ECONOMIC NEWS}

Impending Banking Crisis? $929 Billion Commercial Real Estate 'Debt Bomb' Threatens to Explode, Endangering Hundreds of Banks

Experts warn that the distressed U.S. commercial real estate market could trigger a banking crisis if default rates on commercial mortgages rise sharply. In 2024, $929 billion in commercial mortgages will mature, representing 20% of the total outstanding debt. Higher interest rates have decreased property values, particularly for office buildings due to remote work trends.

Approximately 14% of all commercial real estate loans and 44% of office loans are underwater. If default rates hit 10%, around 231 U.S. banks could face insolvency, potentially sparking bank runs similar to the Silicon Valley Bank collapse. Traditional banks hold about half of the maturing commercial mortgages, adding to their risk.

Interest rate hikes have reduced the value of bank assets by about $2 trillion. If defaults rise, smaller regional banks with significant CRE loan portfolios and high proportions of uninsured deposits are most at risk of collapse. Although some experts believe the banking system may withstand the impact, the situation remains precarious. Read More.

_{FINANCIAL FORECAST}

Terrifying Market Trends: The Best and Worst Performing Assets of June, Q2, and the First Half of the Year

Deutsche Bank's thematic research team published a performance review for June, Q2, and H1. Highlights include:

• Top Performers: Silver (+22.5%), copper (+12.9%), gold (+12.8%), and WTI oil (+13.8%) led H1. The NASDAQ (+18.6%) and S&P 500 (+15.3%) had strong H1s, boosted by Nvidia's +149.5% return.

• Struggles: French assets slumped post-election announcement, with OATs down -6.8% in H1. The Japanese Yen was the worst G10 currency in Q2.

• Agricultural Commodities: Corn (-10.1%) fell for a 6th consecutive quarter.

• Macro Trends: Inflation and interest rate hikes affected markets, with significant impacts on sovereign bonds and commercial real estate loans.

Political and economic developments, including rising default risks on commercial mortgages and a potential banking crisis, remain concerns. Read Now.