Interest Rate Hedging
It seems like rising interest rates are the number one risk for RE investors today. Does anyone know how investors are mitigating this, whether allocating to specific asset classes or using capital structure/debt terms?
I have no fucking clue what is going to happen with rates, but below is how I manage/think about them:
Can you further expand on when you use swaps? Never understood them and their value for the borrower. Thsnks
Honestly, we don't really use them because there are better alternatives (caps and corridors), but I do know some developers use them because their loans are often of a shorter duration.
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