Jackie Bowie explains how rising interest rate cap costs may influence the market
Jackie Bowie in the Wall Street Journal
“The risk for real-estate borrowers is that the market eventually comes round to the Fed’s view."
“The risk for real-estate borrowers is that the market eventually comes round to the Fed’s view,” says Jackie Bowie, managing partner at Chatham Financial. The WSJ examines what CRE investors face when purchasing interest rate caps. "According to data from risk-management firm Chatham Financial, a three-year cap at 3% for a $100 million loan cost $98,000 in April 2019. Today, the same cap costs $3.48 million."
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