Some US banks are looking to sell off property loans at a discount, even when borrowers are up to date on repayments, to reduce exposure to the unstable commercial real estate market. This follows multiple warnings that the asset class is the “next shoe to drop” after recent turmoil in the US regional banking industry. HSBC USA is in the process of selling hundreds of millions of dollars of commercial real estate loans, potentially at a discount, as part of an effort to wind down direct lending to US property developers.