Regional banks and investors face looming crisis in commercial real estate market.

US regional banks, which account for 68% of all commercial real estate loans, could face a potential credit crunch due to a wave of upcoming refinancings of commercial real estate loans at much higher interest rates than in the past. This could lead to a wave of defaults that stings bank stocks and adds to a "coming toxic recession." The weakening outlook for commercial real estate, combined with a mounting wall of debt due to mature soon, could spell trouble for banks, stocks, and the broader economy.