CLNC - Commercial real estate business debt cause concern in Fed report

For the most part, the economy appears to be recovering from the pandemic's jolt last year, even though the pace of recovery has been slowing.Still the Federal Reserve points to some concerns in its semi-annual report to Congress. One such area is commercial real estate values."Commercial real estate prices remain at historically high levels despite high vacancy rates and appear susceptible to sharp declines, particularly if the pace of distressed transactions picks up or, in the longer term, the pandemic leads to permanent changes in demand."That risk looms over $430B of CRE debt that's due to mature in 2021.In addition, business debt has risen over the course of 2020 from levels that were already elevated, bringing business leverage to near record highs.A number of factors, such as low interest rates and recently improving earnings, may be muting risks for the time being. Still, "insolvency risks at small and medium-sized firms,

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Commercial real estate, business debt cause concern in Fed report