As the attached article, U.S. 10-Year Yields Trade Close to Record Lows on Europe, states Treasury rates continue to drop as demand for treasury increases. However, most borrowers are not getting the full advantage of the treasury drop. CMBS spreads widened dramatically last week and agency spreads have also widened as the treasury drops. It seems [...]
In the good old days, before the collapse of the CMBS market and partial failure of the banking system, interest only (I/O) loans were everywhere. Banks were offering them, Life Companies were offering them, and Conduits were putting them on practically every deal as were Freddie and Fannie. And it wasn’t only partial I/O, for [...]
The Federal Reserve is sticking with QE2, their program of buying Treasury bonds to try to keep long-term interest rates low. This is despite the results of this so far which seems to have the opposite effect. In their final meeting of 2010 the Fed decided to keep short-term interest rates near zero for the [...]
Looking for what news is coming out next week or next month. With the treasury market making wide swings based on each days news its important to know what events are on the calendar instead of being surprised. There are lots of places to find this information, but the place I look is this 2010 Economic Calendar. More links like [...]
As expected, the FOMC maintained its target rate for the Fed Funds rate unchanged at between 0 to ¼% and reiterated its expectations that the level of the fed funds rate will stay exceptionally low for an extended period. The Fed’s assessment is similar to the one it provided in August. However, experts seem to [...]