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| Weekly Interest Rate Tracking |
| January 29, 2009 |
Good Morning,
Attached is a PDF copy of Colliers Meredith & Grew's interest rate sheet that includes current and historical Treasury, LIBOR and Prime interest rates, which are updated daily with real time data from Strategic Alliance Mortgage.
We provide these updates on a weekly basis to keep our clients and colleagues aware of rate movements. We hope you find this information helpful.
DOWNLOAD INTEREST RATE SHEET (204KB)
The following Market Perspective provides insights and commentary on breaking news and emerging trends in commercial real estate finance.
Despite the headwinds, life insurers will enter the year in a position of strength. They will cherry pick low leverage, no risk deals. Pricing will continue to adjust with the market, but approximate spreads of 425 to 500 basis points over comparable term treasuries will be typical. Portfolio lenders do not want to take on a lot of risk and will need to get paid well to do so. On a positive note, many insurers have eased prepayment penalties and/or begun negotiating discounted note sales to recycle capital and clean up balance sheets, thus allowing borrowers to retire loans early at par or even sub-par values.
FOMC Keeps Fed Funds Target in Range of 0 to 1/4%
Citing a continued deterioration of economic fundamentals, the Federal Open Market Committee decided yesterday to keep its target range for the federal funds rate at 0 to 1/4 percent. The FOMC reiterated its position to keep the federal funds target rate at "exceptionally low levels for some time." The Committee did not mention deflation in its statement but did state that it "expects that inflation pressures will remain subdued in coming quarters. Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term." Reading between the lines, the FOMC anticipates a period of deflation in coming quarters. Click here for the FOMC's full press release.
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| Please contact the Capital Markets Group at Colliers Meredith & Grew with any financing questions.
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Colliers Meredith & Grew is a Boston-based commercial real estate company with integrated service groups including Brokerage, Capital Markets, Counseling & Valuation, Development & Advisory, Investment Sales, and Property & Asset Management. In addition to representing its core clients in New England, Colliers Meredith & Grew provides national and international real estate services to its multi-market clients as a member of Colliers International and as an owner/member of Strategic Alliance Mortgage LLC (SAM). Colliers International is a worldwide affiliation of independently owned and operated companies in more than 293 offices in 61 countries. |
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