Interest Rates

August 16, 2024

The dividends of policy divergence

The global interest-rate easing cycle is under way. We explore what that means for investors taking a global view on fixed-income opportunities while putting credit and currency risk in perspective.

February 7, 2024

US CRE debt markets continue to navigate “new territory”

Altus Group’s CRE Exchange recently welcomed special guest Dr. Stephen Buschbom to discuss the dynamic US CRE debt market.

November 30, 2023

The Real Villains of Today’s Housing Market

The tale of the housing market over the past few years, in which big Wall Street firms and greedy Airbnb investors elbowed out first-time buyers and drove up home prices, is appealing. It's nice and tidy, with a clear delineation between good guys and bad guys. But it also misses the mark.

November 7, 2023

Leitbox Storage Partners Provides Update on Financing Structure

Currently, Leitbox holds a diverse portfolio of fixed-rate loan structures, with varying maturities extending over the coming years...

November 7, 2023

A Perspective on the Current Trend in CRE Cap Rates

"These supply and demand factors can have a significant impact on future returns, and the prospects of lower future returns will be reflected in cap rates."

November 6, 2023

Higher Interest Rates and Nontraded REIT Refinancing

As of June 30, 2023, the weighted average interest rate on all NTR debt was 4.34%...These recent rates indicate that nontraded REITs seeking to refinance the debt principal are looking at significant rate increases on their borrowings.

September 13, 2023

It Should Be Obvious What Rising Rates Are Doing to Commercial Real Estate

In an article we published on the Blue Vault website on September 6, 2023, we asked the question “What Happened to Ares Industrial REIT’s NAVs.” After looking at the possible relationship between Ares Industrial REIT’s NAVs over the past two years and the monthly returns posted by NAREIT’s listed REITs categorized as “Industrial” REITs, we…

August 30, 2023

A Curious Look at Commercial Real Estate Cap Rates

In this article we ask the question, “Which came first, the market value or the cap rate?" Does that question sound familiar? It should, since it really is like the classic “chicken or egg” conundrum. The fact is cap rates do not determine market values and market values do not determine cap rates. But, each…

August 29, 2023

How Interest Rate Caps and Swaps Are Used by Non-Traded REITs

Non-traded REITs utilize different types of financial contracts to hedge their variable rate debts to protect themselves financially from changes in interest rates...