Commercial real estate lending by banks represents one of the largest blocks of available debt financing in the U.S. market. In the wake of the regional banking crisis, where three of the four largest American bank failures happened in the span of a couple months and the Federal Deposit Insurance Corporation was forced to take over, the attention of the market and regulators shifted to analyzing CRE lending and any complicity this sector had in the collapse of regional banks.

• A shift in market sentiment between FOMC meetings
• Projections of low future supply provide tailwind for spreads