One of the major manifestations of the current market crisis is the increased volatility in short-term interest rates, such as three-month Libor. This development has reminded commercial real estate lenders of the risk posed by floating-rate loans.
Over the past decade, there have been four principal forces pushing lenders away from fixed-rate loans: forgetfulness, borrowers, treasuries and mislaid risk. The forgetfulness is simply that interest rates have been stable for as long as many borrower
The week on Risk.net, July 7-13, 2018Receive this by email