Call it another weekend surprise, as Swiss banking giant UBS bought out crumbling 167-year-old Credit Suisse for a $3 billion rescue — that, as Morningstar notes, might have been a bargain last week, but this week, who knows?
With this latest shakeup, it's a good time to ask what the potential impact on commercial real estate might be.
At the end of its 2022 fiscal year, Credit Suisse held about $27.5 billion in real estate loans, down from $30.8 billion in 2021 and $31.4 billion in 2020, based on the bank's annual reports. The 2022 sum was 9.4% of its total loan portfolio and 21.4% of the corporate and institutional loans, although some related loans like construction could be listed under another subcategory. The residential mortgage category is far larger, at $116.1 billion.
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