Wells Fargo Bolsters Reserves for Weakening Commercial Real Estate: What Investors Must Know
Stocks have gone on a tear, with the S 500 index up 19% since the start of the year. The rally has some investors optimistic that we could be in a new bull market.
However, investors shouldn't let the recent rally distract from potential risks relating to higher interest rates -- specifically commercial real estate. Concerns center around office properties and high refinancing costs as interest rates hit multi-decade highs.
Wells Fargo (NYSE: WFC) is one of the country's largest commercial real estate (CRE) lenders. It recently bolstered its allowance for credit losses on its CRE portfolio by billions in the second quarter. Here's what investors need to know about this move by the bank.
Source Fool.com
