Office Buildings Are Defaulting Faster Than 2008 - And Almost Nobody's Talking About It.

Office loan delinquencies inside commercial mortgage-backed securities just hit 12.34%, the highest ever recorded, even higher than the peak of 2008. Blackstone just defaulted on a $343 million Chicago tower. Another building nearby sold for a 73% discount. But banks say they're not worried. I dug into why both things can be true at once and found a hidden $12 billion problem that isn't even showing up in the numbers yet. Sources: Trepp, Federal Reserve, FDIC, Mortgage Bankers Association, PNC earnings filings