Property consultant Pinnacle Real Estate Consulting Services, Inc. did a “snapshot” study on the lending levels and distressed debt levels of banks throughout the country to identify any distressed debt opportunities. They found that there were limited opportunities overall given that the country’s distressed levels are at 15 year lows.
In particular, Universal and commercial banks have a total distressed debt of 3.86%, thus having limited and shrinking distressed debt opportunities. Rural and Thrift banks have a total distressed debt of 19.21%, with distressed debts opportunities existing and growing. Government agencies meanwhile have existing opportunities, and finally, the non-finance sector mixed opportunities.
Pinnacle described the situation as a "classic “Tale of Two Cities” with a handful of strong city banks on one spectrum and a multitude of distressed rural and thrift banks in organized chaos on the other."