In addition, the market turmoil has had a sizeable impact on the issuance of commercial real estate-backed securities.
In our overall assessment, highly-leveraged firms and commercial real estate corporations may entail significant risks to euro area financial stability not only because of potential asset price reversals, but especially because several euro area large and complex banking groups have large lending and investment exposures to these corporations. Developments in these sectors therefore need to be closely monitored in the period ahead.