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Jackie Bowie explains how rising interest rate cap costs may influence the market

Date:
May 2, 2023

Summary

The Wall Street Journal reviews interest rate cap costs with Jackie Bowie to see how they may affect property owners in the next year.

“The risk for real-estate borrowers is that the market eventually comes round to the Fed’s view."

Jackie Bowie in the Wall Street Journal
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“The risk for real-estate borrowers is that the market eventually comes round to the Fed’s view,” says Jackie Bowie, managing partner at Chatham Financial. The WSJ examines what CRE investors face when purchasing interest rate caps. "According to data from risk-management firm Chatham Financial, a three-year cap at 3% for a $100 million loan cost $98,000 in April 2019. Today, the same cap costs $3.48 million."

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Chatham Financial is a global advisory and technology firm focused exclusively on financial risk management. With unsurpassed expertise and experience in the debt and derivatives markets, we support our clients through a broad set of advisory capabilities, process and execution services, and technology solutions.