Trepp has been reviewing various property types "through the lens of bank CRE loans." It already covered multifamily and office. Now Emily Yue, a research analyst for the firm, has completed the analysis of retail.

The reason for the bank-centric approach is because about 60% of CRE debt is held on bank balance sheets. As GlobeSt.com has reported over time, banks have faced concerns about the safety of deposits given questionable valuations of assets. That includes the plunging worth of bonds bought at low yields when the Federal Reserve pushed interest rates up or the soundness of CRE loans because of their likely reduced ability to gain refinancing.

To understand the analysis, the following description is important: "As part of the data collection and anonymization process for Trepp's Anonymized Loan-Level Repository (T-ALLR) data set, Trepp translates contributors' internal risk ratings to a standardized risk rating that ranges from 1 to 9. A risk score of one indicates the lowest probability of default, a risk rating score that is above six is considered a 'criticized loan,' and the highest risk score of nine means that the loan is in default."