Banks face further loan losses from global office market slump – Morningstar DBRS

Banks globally will likely rack up further losses on office property loans as a bruising crash in valuations leads to more defaults, credit rating agency Morningstar DBRS said on Wednesday. Higher borrowing costs and a sharp fall in demand for office space as more people work from home has punished commercial landlords, increasing the risk of their bank loans going unpaid. Several lenders including Wells Fargo and JPMorgan in the United States and Deutsche Bank in Germany have set aside more cash to cover potential losses on office loans, particularly to cover exposure in the United States.