Pimco predicts increased US regional bank failures due to commercial real estate loan issues.

Pimco expects more US regional bank failures due to high concentration of troubled commercial real estate loans. Commercial real estate lenders face distress from high borrowing costs and valuation declines, and larger banks have been selling high-quality assets to avoid deeper losses. The real wave of distress for lenders to malls, offices, etc. is just beginning, according to Pimco's John Murray.