Lenders' Insatiable Appetite for Commercial Real Estate
After the S&P Downgrade | by Erika Morphy | Following the downgrade of US, S&P also lowered the credit ratings of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. What does the downgrade mean for the apartment sector? Higher costs of capital. In contrast, Treasury yields fell after they were downgraded. Sam Chandan explains that ""investors are nervous, and that will result in a flight to quality. That means capital flowing into Treasuries, in spite of the ratings adjustment, which may push yields even lower than we observed during the recession."
Read the full story at the GlobeSt website.