Fact from Hype
The standard response from most shops amidst all of the recent market flux is a tired tagline about locking in historically low interest rates before they move dramatically to the upside. We’re going to forgo the pitch and instead provide some facts and data that can help inform decisions relevant to your bottom line. Above are two very telling graphs on interest rates. The first shows recent activity in the 10-year US Treasury from March 2013 to June 2013. The second graphic takes a broader view of multiple rate indexes and dates us back from 1985 to today.
The financial world is never short on its supply of predictions and soothsayers, with mixed market reactions ranging from a continued upward rate trend to the return of historically low levels. One variable that we’re sure will continue to drive the recovery is lenders’ urgency in maintaining liquidity in the system. In the face of less attractive opportunities in equity and elsewhere, the best bet for CMBS, Bank, and Life Company returns will be continued investment in the commercial realm.
(via bloomberg)