Anyone stupid enough to have variable rate loans long term is going to have huge regrets.
That includes the USA and the Fed mortgage companies like Ginnie Mae and Freddie Mac.
Amazing these firms didn’t hedge their interest rates - it was unbelievably cheap to fix these rates 15 months ago - like adding 25 basis points to the interest - to lock in at 0 LIBOR. Just dumb.
Gee, I guess those “Masters of the Universe” on Wall Street aren’t as smart as they think.
Thank You Dr. Fauci May I Have Another
This is one of many such commercial building finances that are running into trouble as vacancy rates on commercial (office) space continues to NOT recover fast enough, and that reason is remnote office work established during the pandemic is not going away, even if it is reduced somewhat.
I predicted this over a year ago.
This is just the tip of the iceburg. Incredible, economy-shaking defaults are coming in the commercial real estate business - and they will domino-affect everything......