Lower yields on bonds, underscored by an inverted yield curve and 10-year rates below 2%, are cause for insurance companies to reevaluate their fixed-income investment positions. … READ MORE >
bonds
Low treasury rate is a boost for home builders, neutral for commercial real estate
Bonds have been declining in recent weeks following a 25-basis-point rate cut from the Federal Reserve and expectations of further cuts amid rising concerns over an impending recession. Recession concerns were escalated by the inversion of the U.S. and U.K. two- and 10-year yield curves and the fall of 30-year Treasury yields to 2.07%, a record low. While this trend in the bond market will likely drive down the 30-year fixed mortgage rate and translate to more purchasing power for home buyers, it will do little to juice the market for commercial real estate. … READ MORE >
Central banks brace for economic slowdown as manufacturing reflects contraction
As global central banks, including the U.S. Federal Reserve, prepare to proactively stave off an economic slowdown, we turn our attention to the primary rationale behind the push to alter monetary policy–the global economic downturn in manufacturing and its ripple effect on middle market suppliers. … READ MORE >