Interest rate cap execution checklist

These hairy chart graphs plot past LIBOR forward curves against the actual path LIBOR followed, showing that the forward curve has been a somewhat accurate predictor over the next six months or so...

Understanding the tactical steps involved in executing on an interest rate cap can help CRE investors plan and use their time efficiently prior to closing on a loan. Request your interest rate cap execution checklist here.

There is emerging evidence that the way the housing association sector hedges its interest risk will change in the coming year. Currently, most are able to fix the debt through an embedded swap (a fixed-rate loan or “FRL”). FRLs account for the majority of fixed-rate borrowing for most small to...

A series of government bond selloffs have jolted financial markets since the start of 2021. In the UK, one consequence is a sharp rise in the cost of hedging GBP interest rate exposures. Having started the year at 0.08%, the five-year swap rate on 3-month GBP LIBOR hit 0.52% at the end of...

This piece summarizes a series of public announcements on March 5 regarding the timing of LIBOR cessation. Most notably, one- and three-month USD LIBOR will be published through June 30, 2023, while all non-USD LIBOR settings (GBP, EUR, CHF, JPY) will be published through December 31, 2021....

Markets are pricing in the first 25 basis points of Fed rate hikes to occur mid-2023 versus early-2024. Benchmark Treasury yields hit their highest points since the start of the COVID-19 pandemic and the levels strained liquidity in U.S. interest rate markets.

Longer-duration yields have risen and the yield curve has steepened in a hurry. 10-year yield touched 1.55% on February 25. The last time it crossed 1.50% was a year ago before the COVID-19 pandemic. The 10-year yield fell below 0.60% on March 9, stayed around 0.60-0.70% for months till...

While many new interest rate caps incorporate revised LIBOR fallbacks prepared by ISDA, these fallbacks are not currently incorporated into caps on Freddie Mac and Fannie Mae loans. How will Agency loans and caps be treated as the market transitions from LIBOR?