Debt Recon May 22, 2011: How the borrowing landscape changed

Interest rates continued to stay low with the 10T hovering around 3.15%.  Energy inflation seems to be transitory and inflation expectations are generally well anchored.  Investors are still pouring into treasuries in search of safety and yield and shunning stocks.  Gobal uncertainty in Greece and Spain is helping demand for U.S. treasuries.  Banks are coming under intense scrutiny from the New York A.G. for activities in the securitized bond market.  The executive and legislative branches of government continue to play chicken with the debt ceiling.  They could use a man like Harmon Killebrew to lead the unleadable to a resolution.  Rest in peace Killer.  The world has lost a true gentleman.  The E.U. is questioning the banks that comprise the LIBOR calculation for collusion.  That would be a masterpiece of collaboration if it’s true.  The CMBS market is percolating with new pools by JP Morgan, Wells Fargo and RBS in the works.  13% of residential mortgage holders are more than 30 days delinquent and the CMBS delinquency rate climbed to 9.2%.  Both are still too high.  Finally, the SEC announced plans to tighten rules on credit rating agencies.  For borrowers this means longer closing timelines, high costs to pay for more legal time for rating agencies, and lengthy delays and increased costs for securitized loan modifications.  Borrowers across the spectrum will pay for these new rules.  It’s just a pass through for the rating agencies.


About Michael Shelton

Your Business Coach Facilitating Delegation and Work Group Engagement Michael Shelton has over twenty-five years of business and military accomplishments, including extensive experience with one of the largest, publicly traded real estate investment trusts (REIT). He is a qualified business coach with assignments in cross-functional work group management, strategic planning, unit leadership, joint venture acquisitions, executive education, mentoring, training and merger integration. Michael has accumulated best practices for building committed work groups from more than $4 billion of capital markets transactions and commercial property development. He served as a commissioned officer and helicopter pilot in the U.S. Army, and earned his MBA from The University of Arizona. Michael has served as a major conference panelist and is the author of Cash Flow Rich, Winning Ways to Evaluate and Finance Real Estate. Today, he helps business owners get more work group engagement as President and CEO of Shelton Business Services, LLC in Scottsdale, Arizona. Disclaimer: I don't offer investment, legal or tax advice. Talk to your broker, accountant or lawyer for investment, tax and legal help. I might own stock in the companies I mention on-line. My posts, tweets and other on-line activity are my personal thoughts and don't represent my employer or company.
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