13min chapter

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Real Estate Crisis Hits Two German Banks | Josef Pschorn on Deutsche Pfandbriefbank and Aareal Bank

Forward Guidance

CHAPTER

Risk Profiles of European Banks and Real Estate Market Dynamics

Exploring the contrasting risk profiles of German banks Aareal Bank and Deutsche Pfandbriefbank, the chapter delves into their capital structures, market indicators, and distress signals like low trading prices of securities. The discussion extends to the exposure of these banks to US commercial real estate loans, highlighting concerns about market conditions and risk concentration. Additionally, the episode touches on the impact of increased rates on property valuations and equity investments in the real estate market.

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