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Jackie Bowie and Amol Dhargalkar discuss higher-for-longer interest rates in the Real Estate Capital USA

Date:
October 6, 2023

Summary

Real Estate Capital USA covers Chatham's Semiannual Market and Economic Update webinar, hosted by Jackie Bowie and Amol Dhargalkar. They outline how higher-for-longer interest rates will impact the global economy across markets and sectors.

Rising interest rates and alternative sources of capital have investors bracing for a different market. Borrowers are turning to alternative sources of capital — such as short-term bridge loans — in hopes of buying more time to execute a business plan or wait until rates are lower than they are today.

“We’re finding that borrowers are having to learn new ways to navigate the markets to try and understand how to best tap into this private debt market and how the structures work because it’s very different from what they’ve seen from their traditional relationship bank.”

Jackie Bowie in Real Estate Capital USA

While many believe the Federal Reserve is closing in on the end of the rate hiking cycle, no one truly knows when these increases will end. The question remains — how much do you believe in the Fed?

“I think a lot of people are very confident that there’s a recession coming, and this indicator [two-year Treasury] is excellent at telling you that a recession is coming, it’s less excellent at saying when that recession is coming though.”

Amol Dhargalkar in Real Estate Capital USA

Our interest rate risk expertise

Chatham provides the knowledge and expertise to help you manage the financial risk associated with interest rate volatility. We execute thousands of transactions annually, based on deep and productive banking relationships, giving us market data and insights to help you secure the best pricing and terms. Our goal is to empower you to strengthen your balance sheet and support your company’s financial objectives.

Our highly experienced professionals, backed by the industry’s most advanced analytics and technology, partner with you to develop a complete hedging strategy, advising on such issues as which instruments to use and current market developments to consider. We help you achieve optimal execution, including handling negotiations and auctions. And because we seamlessly integrate with your hedge accounting and treasury management processes, you can be completely confident that every aspect of your strategy is fully covered.

With the highest volume and widest breadth of engagements in the industry, we empower you to negotiate with banks from a position of knowledge, gaining critical insight into market pricing dynamics while maintaining the integrity of your all-important banking relationships.