by Wolf Richter
Wolf Street
That’s what “spread far and wide” means. During the US CRE bubble, yield-chasers not just in the US but globally gorged on invincible US CRE.
We talked a lot about how exposure to the massive losses in US commercial real estate has been spread far and wide, particularly exposure to the office sector of CRE that now faces a structural crisis that’s not just going to go away, but will have to be dealt with by demolishing older office towers and building something new, and by converting some older office towers at a high cost into residential buildings in cases where that’s even feasible.