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Will Interest Rate Rise and Maturing Debt Sink Real Estate Market

********  IvyPlus April 13th Commercial Real Estate Deal Summit, http://bit.ly/cwHZx9 *******

With the economy on the rebound and interest rates possibly increasing, questions surround the long term viability of Mortgage Backed Securities (MBS) purchased by the government.  A recent article in the WSJ mentions that the New York Fed has inherited a substantial portfolio of MBS from Bear Stearns, a large percent in hotel properties which are in disarray. 

The article in The Economist, “Earthbound,” discusses the reforms Congress is trying to make to alleviate the negative symptoms of the recession. The Fed has purchased “almost 1.25 trillion-worth of such MBSs since last year,” resulting in low interest rates. When rates rise, and a slew of commercial and residential debt maturing as well as sinking asset values, a double dip seems likely.   More here, http://bit.ly/cNO9IL
 

********  IvyPlus April 13th Commercial Real Estate Deal Summit, http://bit.ly/cwHZx9 *******

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