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| Weekly Interest Rate Tracking |
| March 11, 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 (25KB)
The following Market Perspective provides insights and commentary on breaking news and emerging trends in commercial real estate finance.
CMG Market Perspective
Spreads are now a thing of the past, as real estate lending is yield driven. For real estate as an asset class to compete for allocations, commercial real estate spreads HAD to move up. In the past, 75% leveraged mortgage pricing paralleled BBB corporate bonds. Today, with loan-to-value ratios coming down to the 60% range, pricing is closer to single A corporate bonds. As a result, today's 10-year interest rates are in the high 6% to low 8% range.
Bernanke Calls for Broader Regulations
WSJ.com — March 11, 2009
Federal Reserve Chairman Ben Bernanke said regulators should be given broad new powers to oversee financial markets, reflecting the Fed's evolving view that a more aggressive government hand is needed to ensure the future safety of the financial system.
The Law of Unintended Consequences
Moneyweb.co.za — March 9, 2009
Rules have consequences. And sometimes they have unintended consequences. If I told you that the US government was going to give multiple tens of billions of taxpayer dollars to hedge funds and private investors, you would justifiably not be happy. I think the word angry would come to mind. But that is exactly what is happening, as a result of rules that were written for a time and place seemingly long ago and far, far away. Further, we are looking at potentially much larger sums being lost in the bank bailout (can we say hundreds of billions?), a reduced lending capacity at banks and, in general, a worsening of the very problems at the core of the crisis. The good news is that it can be fixed, but the authorities need to get a sense of urgency.
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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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