Inflation fears loom over the capital markets

Lòrdèss Mãggìë II

11 min

Business & Finance

Description

Rising energy prices are pushing inflation up, with some economists predicting it could reach eight percent by December this year. The Consumer Price Index (CPI) is at 6.2 percent year over year. The last time it was this high was in 1990. The CPI could hit a 40-year high in the coming months. The Ten-year fell below 1.51 for a couple of days recently. Analyst Bryan Kern thinks it could go as high as 1.74 or even into the 1.80s by the end of the year. <h1>Expect huge volatility</h1> Thirty Capital CEO Rob Finlay says that commercial real estate investors and borrowers can expect huge volatility in coming weeks and months. “We’re talking 25 to 35 basis points movement. Those are big movements off our 1.54,” he says. Rob alludes to the Fed’s difficult position, noting that tapering is limited and that they can’t do more about inflation because that will stop the economic recovery. Just to illustrate the growth in inflation, Analyst Jeff Lee points out that the Treasury’s 30-year savings bond was at 3.56 on the reset in May, and is now at 7.12 - a doubling, showing how inflation is ballooning. <h1>LIBOR date reminders!</h1> Short-term rates haven’t changed much since last week. Analyst Jay Saunders gives a full overview of LIBOR, SOFR, and BSBY rates. He also gives an overview of major economic and Fed news, and a reminder of the dates of the cessation of LIBOR. If you’re in commercial real estate and wondering how to handle the end of LIBOR, Jay has the answers. <span style="font-weig

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Inflation fears loom over the capital markets

Lòrdèss Mãggìë II

11:22