Hello, fellow rebel capitals, hope you're well. So big news, the mortgage-backed security market is struggling once again.

But this time could be even worse. Let's get right back. Let's go right over to a story from the Wall Street Journal and I'll show you exactly what I am referring to title

Investors Retreat from commercial real estate bonds so

cmbs commercial mortgage-backed securities and if you think oh George this is commercial this has nothing to do with

residential yet this is a 20 trillion with a T dollar market just as big maybe if

not maybe even bigger than the residential real estate market in the United States.

So they start off by saying the price of bonds or the price of these mortgage-backed securities

basically have dropped levels not seen since early days of the pandemic

pointing to growing economic threat stemming from office vacancies.

Now we're going to go over a couple charts here that are going to completely blow your mind.

The second one in particular.

So they say a corner of the US bond market,

so-called commercial mortgage-backed securities CMBS, have taken a beating over a year owing to fears

that owners, business parks, high-rises, office properties could default on loans

extended at the time when work habits were different

and a lot of things were different back then and I'd like to also remind you that these loans

are assets on the balance sheet of small and regional banks.

So this could be the next shoe to drop there as well.

We've done several videos on that.

In fact, I think they mentioned it here in the Wall Street Journal.

They stress only, the stress only deepened after Silicon Valley collapse, which raised concerns

that regional banks might scale back their risk. And the majority of these commercial loans are coming from real estate.

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