Swedish Regulator Warns of More Real Estate Pain Ahead
- Braconier sees small property firms as biggest risk for banks
- Says things ‘may become slightly worse’ before they get better
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Sweden’s real estate market has yet to fully digest a surge in interest rates over the last two years, spelling more pain for investment firms and banks that helped finance its expansion, according to the country’s financial regulator.
“We have still not seen the full effect from rate increases on real estate companies’ funding costs as all debt hasn’t been rolled over yet,” Henrik Braconier, who leads bank oversight at the watchdog known as FI, said in an interview.