The 10-year swap rate and 10-year Treasury rate have dropped gradually since May. This is despite an economic rebound that would suggest higher interest rates as the world recovers from the COVID-19 pandemic. The Federal Reserve, however, indicates it will be “highly accommodative for many years” … [Read more...] about 7.31.21: CMBS LOAN RATES NEAR RECORD LOWS AS TREASURY AND SWAP RATES FALL
3.3.20: CMBS LOAN RATES AT RECORD LOWS AS TREASURY AND SWAP RATES FALL
The 10-year Treasury yield dropped to a record low on Tuesday as the historic decline in U.S. rates continued amid the coronavirus outbreak and the Federal Reserve’s 50-basis-point (bp) emergency interest rate cut two weeks before its March meeting. The 10-year Treasury yield fell to an intraday … [Read more...] about 3.3.20: CMBS LOAN RATES AT RECORD LOWS AS TREASURY AND SWAP RATES FALL
5.23.19: 10-Year Treasury Yield Hits 18-Month Low
Investors abandoned risky assets after rising U.S.-China trade tensions quashed expectations of a near-term resolution, feeding concerns about economic growth and corporate earnings prospects. U.S. Treasury prices climbed amid a flight to quality, sending the yield on the benchmark 10-year note … [Read more...] about 5.23.19: 10-Year Treasury Yield Hits 18-Month Low
2.13.18: Putting the Rise in the 10-Year Treasury and 10-Year Swap in Perspective
A number of our clients are calling concerned over the rise in the 10-Year Treasury and 10-Year Swap that has occurred over the past few months. After touching a 2017 low of roughly 2.00% in September 2017, the 10-Year Treasury and Swap have steadily risen to 2.90% as of last week. While the rise of … [Read more...] about 2.13.18: Putting the Rise in the 10-Year Treasury and 10-Year Swap in Perspective
8.4.16: Meanwhile, Tight CMBS Spreads and Low Treasury Yields Provide Great Rates for Borrowers
After long-term super-senior CMBS bonds peaked at 173 basis points (bp) over swaps in May 2016, spreads have steadily declined to 94 bp when Wells Fargo, Bank of America and Morgan Stanley priced the long-term super-senior bonds from the $871-million offering on Thursday, August 4. Rates to … [Read more...] about 8.4.16: Meanwhile, Tight CMBS Spreads and Low Treasury Yields Provide Great Rates for Borrowers
6.27.16: 10-Year Treasury Nears All-Time Low…
In the wake of “Brexit," Great Britain’s decision to exit the European Union (EU), the 10-year U.S. treasury yield had its largest single-day decline on Friday, and then on Monday, the yield fell to 1.46%, approaching its all-time intra-day low of 1.39% recorded in July 2012. At that time in 2012, … [Read more...] about 6.27.16: 10-Year Treasury Nears All-Time Low…
5.30.14: 10-Year Treasury Falls Further, Confounding Experts
The yield on the benchmark 10-year Treasury note fell further this week, closing at 2.46% on Friday after closing at 2.44% on Wednesday, the lowest closing yield since July 2013. The move caught just about everyone by surprise. I sure can’t figure it out, but here is what one of our investment … [Read more...] about 5.30.14: 10-Year Treasury Falls Further, Confounding Experts
5.16.14: 10-Year Treasury Yield Hits 9-Month Low; Swaps Follow
The yield on the benchmark 10-year Treasury note fell on Thursday, May 15, 2014 to close at 2.50%, a low not seen since last October. Intraday, the note touched 2.47%. Although investors have been expecting rates to rise, the bond market is not cooperating, confounding economists. Weak economic … [Read more...] about 5.16.14: 10-Year Treasury Yield Hits 9-Month Low; Swaps Follow
9.6.13: 10-Year Swap Rate (Swap) Index Breaks 3%; Treasury Not Far Behind
Although 10-year Swaps and Treasury rates fell Friday after a softer-than-expected U.S. jobs report quelled market expectations that the Federal Reserve will imminently roll back its monetary stimulus, the Swap Index used to set CMBS loan rates broke the 3% mark on August 19; it has traded in a … [Read more...] about 9.6.13: 10-Year Swap Rate (Swap) Index Breaks 3%; Treasury Not Far Behind
5.18.12: CMBS Conduit Loan Rates Decline with Treasury Rally
CMBS conduit loan rates have fallen to the lowest levels since the restart of CMBS lending in 2010. Interest rates on CMBS conduit loans are set based on a spread over the libor swap rate corresponding to the loan term. Recently, libor swap rates have declined in tandem with the 10-year treasury … [Read more...] about 5.18.12: CMBS Conduit Loan Rates Decline with Treasury Rally