Commercial real estate borrowers scramble for deals amidst rate volatility

<p><span style="font-weight: 400;">There’s no let down to rate volatility, with the financial markets anticipating the Fed meeting on Wednesday. That day, it is set to announce the timing and pacing of tapering.</span></p> <p><span style="font-weight: 400;">An employment report is due on Friday this week, which will likely reveal disappointing numbers. All this means that the Ten-year is expected to be range-bound 1.51 and 1.74 until the end of the year.</span></p> <p><span style="font-weight: 400;">The one-month LIBOR still sits at 8 basis points, BSBY is at 6.5, while a one-month term SOFR is at about 4.5 basis points. </span></p> <p><span style="font-weight: 400;">However, Analyst Jay Saunders notes the slight fall in inflation in the U.S. means the Fed may just talk about tapering instead of implementing, while continuing to monitor economic indicators. </span></p> <h1><span style="font-weight: 400;">Rate volatility for the Ten-year</span></h1> <p><span style="font-weight: 400;">Jay discusses in detail what is available from commercial real estate borrowers, noting that three-year treasuries traded in a range of about 11 basis points last week, in what was a very volatile week. Jay notes that as rates increase the economy is beginning to slow. </span></p> <p><span style="font-weight: 400;">Jay predicts: “We're going to continue to see that as people grapple with the timing of the fed taper, which has now been pulled forward to June of next year.”</span></p> <h1><span style="font-weight: 400;">CRE borrowers desperate to close deals</span></h1> <p><span style="font-weight: 400;">Within Thirty Capital, Analyst Jeff Lee says he’s seeing “Continued craziness. We’re still getting emails over the weekend saying: ‘Hey, got clients, can you help them with a year-end deal?’.</span></p> <p><span style="font-weight: 400;">“We're kind of falling within the final week or so to even have a shot (at finalizing a deal). But I think a lot of these transactions on the other side of the defeasance might be hindered by third-part