Investors should avoid banks with heavy commercial real estate exposure, according to a research note released by Morgan Stanley analysts. "So far, we estimate the mid- and large-cap banks are 32% and 49% of the way through their total commercial real estate losses, less than most other loan categories," Morgan Stanley said. "We are most concerned with retail and office, given long-lease terms, consumer deleveraging and elevated unemployment, whereas hotel and multifamily tend to be earlier cycle but still a headwind."

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