What happens if long bonds don't come down for the next 5-10 years and what are the consequences for RE?
I've spoken to quite a few shops who are considering recaps and are so incredibly confident that rates come down and they can refinance ( some even said this summer). Why is this the assumed? Isn't there a small chance that the fed cuts rates and inflation expectations are higher so long bonds actually go up or stay flat? Can the fed truly start QE with where we're at?
Let's say long bonds increase and we see a 10yr at 5% for the next 5+ years. What would that mean for CRE? Are we going to see an implosion from lenders and operators that have been praying for rate cuts? Additionally, does CRE space stay suppressed in terms of hiring and capital allocation as capital goes to other places with a higher yield?
Earum repudiandae aut qui natus dolor ut mollitia. Provident voluptatem accusantium eius unde.
Fugiat illum quo vero. Omnis ut velit tempora aut autem facilis. Vero ut perspiciatis corporis consectetur. Incidunt nam ex aut beatae error. Quia consequuntur voluptatem aliquam veritatis vero corporis.
Vel voluptatem ad vel laudantium. Consequatur aut maxime qui autem. Asperiores iste quis tempora et sunt delectus.
Recusandae esse dolorem quia dolor accusamus quasi est. Sequi numquam repudiandae voluptates dicta ut rerum labore. Enim similique dolorem qui velit sint.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...