George Gatch, CEO of JPMorgan Asset Management, warned commercial real estate is one of the critical areas of risk in global markets.

 

George Gatch, CEO of JPMorgan Asset Management, warned commercial real estate is one of the critical areas of risk in global markets.  Gatch shared his thoughts at JPMorgan's European Media Summit.  Gatch said Ark Investment's massive loss shows that the Federal Reserve's aggressive interest-rate hikes have burst the stock bubble.  Ark's Cathied Wood disclosed in a Bloomberg TV interview that she lost over $2B during last year's market collapse.  He added that the failure of SVB and the emergency takeover of Credit Suisse indicated the stress of rising interest rates.  Gatch cautioned the next domino to fall could be the commercial real estate sector, with high-interest rates causing private market assets to shift lower in price.