Fed Says Banks Showed $64.9B In Projected Losses From Commercial Real Estate, An 8.8% Decline Of Average Balances, Down From 2022 Losses
Portfolio Pulse from Benzinga Newsdesk
The Federal Reserve has reported that banks showed $64.9 billion in projected losses from commercial real estate, marking an 8.8% decline of average balances. This is a decrease from the losses reported in 2022.
June 28, 2023 | 8:32 pm
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NEGATIVE IMPACT
The SPDR S&P Regional Banking ETF (KRE) could be impacted by the reported losses in commercial real estate, as regional banks may have significant exposure to this sector.
The SPDR S&P Regional Banking ETF (KRE) tracks a market-cap-weighted index of regional banking stocks. As such, any significant changes in the banking sector, such as the reported losses in commercial real estate, could potentially impact the performance of this ETF.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Financial Select Sector SPDR Fund (XLF) could be negatively impacted by the reported losses in commercial real estate, as it includes companies from the banking sector which may have exposure to this sector.
The Financial Select Sector SPDR Fund (XLF) tracks a market-cap-weighted index of S&P 500 financial stocks. As such, any significant changes in the financial sector, such as the reported losses in commercial real estate, could potentially impact the performance of this ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) may see minimal impact from the reported losses in commercial real estate, as it is a broad market index fund with diversified exposure across sectors.
The SPDR S&P 500 ETF (SPY) tracks a market-cap-weighted index of the US large- and mid-cap stocks, covering approximately 80% of the US equities market. Given its diversified exposure, the impact of losses in the commercial real estate sector may be minimal.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50