Timothy R. Leonhard: The Debt Corner Future Impacts Are Uncertain but Affordable Multifamily Debt Options Are Still Attractive ““ For Now

By Caitlin Jones
September 27, 2011 0 min read

Share

Tax Credit Advisor, September 2011: While the early August downgrades by Standard & Poor’s of the U.S. and GSEs has created some uncertainties about possible impacts that may yet play out, debt financing for affordable multifamily rental housing is still readily available on attractive rates and terms.

Since mid-May, rapid changes have occurred in the financial markets (which affect the debt market) that require monitoring on a daily basis. Debt financing on affordable housing assets remains very attractive with near all-time low interest rates and favorable credit terms. The 10-year U.S. Treasury has declined approximately 70 basis points since mid-May, yet investor spreads have widened significantly as a result of the recent ratings downgrades, and a large spread has developed between short- and long-term borrowing rates. Read More…