Commercial Finance and Lending
Bill Gross Says U.S. Understates Inflation
May 22, 2008
The manager of the world’s largest bond fond, the Pimco Total Return Fund, says that the methodology the United States uses for calculating its inflation rates results in an understatement by roughly 100 basis points. This results in real GDP growth and real bond yields to be off by a similar amount.
If the calculation was [...]
Short Term Rates Down, Long Term Rates Up, Economy Down
March 17, 2008
The Fed’s recent actions to help stabilize economic conditions are not impressing foreigner’s holding US debt instruments. The inflationary actions of the Fed have resulted in foreign buyers of US debt to essentially boycott government auctions for treasuries.
Over the past eight weeks, the share of foreign buyers participating in these auctions was somewhere around 25%. [...]
Not Even One Securitization Issuance Priced In January
February 12, 2008
NREI is reporting that in January, not a single CMBS was priced in a one-month period. This is the first time in the 20-years since CMBS product was introduced that this has happened.
Also telling is that despite this lack of activity, some $37B in securitizations remain in the pipeline. In the face of this prices have seemed [...]
Commercial Market Downturn Talk Gaining Traction
December 28, 2007
For months now we have been hearing of the downturn in the residential market and the subprime woes that have put a stranglehold on credit. The media has been all to focused on the residential market because that is what most people on the streets are concerned with.
We are starting to see the mass media picking [...]
Short-Term “Enhanced Cash” Fund Goes Below Par
November 14, 2007
An article in Barron’s highlights that a short-term institutional bond fund run by GE Asset Management is offering investor’s the ability to redeem their holdings at 96 cents on the dollar. Short-Term bond funds such as this typically strive to maintain a NAV (net asset value) of $1.00 and provide a market yield. In an [...]
Read More >>Sub-Prime Impact Likely to Continue
November 7, 2007
The sub-prime woes plaguing Wall Street firms is undoubtedly likely to continue. Citibank is expected to report approximately $11-12B in write-downs. Taking a quick sample of what has happened to the stock prices of companies such as Washington Mutual and Citigroup, it is without a doubt the case that those firms with large amounts of [...]
Read More >>Shorenstein Picks Up Piece of Moffett Towers Debt
October 24, 2007
Shorenstein has purchased a $40M stake of the $216.8M construction financing debt package provided to Jay Paul Co. earlier this year for the construction of the Moffett Towers Project.
The Moffett Towers project includes about 900,000 square feet of Class A Office Space and will eventually include an additional 900,000 square feet as well as a [...]