The Conundrum of Commercial Release Date Debt Finance

The key issue with commercial release date is that much of the debt finance behind it now sits in regional banks balance sheets. The concern is that the defaults or potential defaults in the space could have a domino effect on those institutions whose balance sheets are already fragile. That said, not all CREs created equal either. So I would argue that there are two reasons why the hard landing scenario is still more likely than the soft landing scenario.