(Bloomberg) — Banks are saddled with dangerous loans, signaling bother forward within the US industrial property market, Berkshire Hathaway Inc.’s Charlie Munger instructed the Monetary Occasions in an interview.
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Regardless of Berkshire’s lengthy historical past of supporting US banks in instances of turmoil, the corporate stayed on the sidelines after the collapse of Silicon Valley Financial institution and Signature Financial institution. A number of the reticence got here from dangers lurking in banks’ massive portfolios of business property loans, he mentioned.
“Lots of actual property isn’t so good any extra,” the Berkshire vice-chair instructed the Monetary Occasions. “We’ve got plenty of troubled workplace buildings, plenty of troubled procuring facilities, plenty of troubled different properties. There’s plenty of agony on the market.”
“Each financial institution within the nation is approach tighter on actual property loans as we speak than they had been six months in the past,” Munger added.
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