NEW YORK, Sept 27 (Reuters) - The economic effects of the
coronavirus are battering the U.S. commercial-backed securities
market, raising the question of the value of hotels, malls, and
other buildings that act as collateral for mortgages, according
to a report in the Financial Times on Sunday.
Wells Fargo estimates that U.S. properties that have gotten
into trouble are being written down by 27% on average, according
to the report. (https://on.ft.com/36cE4eE)
Declining appraisal values could hammer portfolio managers
that have moved into the commercial mortgage-backed securities
market in search for yield at a time when the Federal Reserve
has indicated that it will keep benchmark yields near zero until
2023 at the earliest.
(Reporting by David Randall; Editing by Lisa Shumaker)