For the past six months, the bond market has been under siege from a perceived economic slowdown which has sparked market instability. In an exclusive Q&A, GlobeSt.com turns to iBorrow CEO Brian Good for insight on how bonds are playing out in the real estate market.
The instability in the bond market has a ripple effect. Deals in escrow are being re-traded by lenders looking to sell to conservative buyers, and transactions have slowed because buyers can no longer afford to pay the low cap rates.
This instability has caused many lenders to retrench, triggering a standoff between borrowers and sellers. Without compromise from both sides, there will be no asset trading or market movement.
Good also addresses how the upcoming election and how foreign economy impacts America’s trading. “Markets survive elections, and I think lenders give more lip service to fact that it is an election year. I do think the ongoing Brexit saga in Europe has had more effect than people expected,” said Good.
“Fear of the unknown makes investors and lenders nervous and could lead to some short-term questions. However, long term I believe the commercial market is strong and has good fundamentals.”