Harbor Group International’s Post

Manager Bryn Jones explains how his fund performed last year. He sets out the outlook for #interestrates and more. Bryn believes interest rates have peaked, so he talks through the strategies he believes should perform well in 2024. #ProfessionalAdvisersOnly #InConversation #RathbonesAssetManagement #FixedIncome #OutNow #RathboneStrategicBondFund

Liquidity War Against CRE Continues As Fed Goes Illiquidity Long On Redemption WaterFall Few CRE investors, regional banks & US citizens realize that all wars are banker wars. From early 2021 the central bank have been at war against commercial real estate & regional banks leverage concentration on CRE as the basis of wealth creation versus Wall Street derivative products & private equity.The June 2021 Fed gave specific instructions after refunding the largest banks with liquidity after the 2020 pandemic & 2008 GFC to restrict CRE lending. However, after a temporary pause,big banks could begin stock buyback risk against bank reserve. And upon J Powell losing the Basel III reserve regulation to bank lobbyist who advise Congress they extended interest rates out to September & probable beyond.In the on again off again credit liquidity crisis of deglobal leverage capture & design. Approximately $2.75 trillion in commercial mortgage loans will mature between 2023 & 2027 (Trepp.com,) leading to difficult decisions for lenders & borrowers facing layoffs & decreasing CRE syndication waterfall & redemptions. There are 4000 small to medium banks at risk & 700 sitting on the tail of a QT donkey.I don,t think there is loan crisis but there is leverage,liquidity & long bond crisis. The $15B Starwood Real Estate Income Trust said it fulfilled 63% of investor redemption requests in November after the repurchase requests exceeded a 2% limit, reaching 3.2% of net asset value. Blackstone had noted that it has monthly withdrawal limits of 2% of net asset value & quarterly limits of 5% of NAV. It received $1.8B in redemption requests.Blackstone allowed investors to withdraw $1.3bn in November,43% of the redemptions. It’s clear why they would do this. Real estate is not a liquid asset.A fund can’t easily sell shares to raise capital if necessary. Since prices & transactions volumes are flat. In both cases,Asia where investors tend to use higher levels of leverage & many faced margin calls over turns in their domestic markets was the source of many of the redemption requests. Financial Times,reported that 70% of the redemption requests to Blackstone came from Asia, non-US investors make up only about 20% of the fund’s assets. Mansa Musa of BGG says "there should be a limit on how much leverage investors can use going into a non-liquid investment fund would likely be empty, because the investors could use leverage elsewhere, leaving themselves vulnerable, as apparently happened in this case. The regional bank space is facing is a lot of pressure on USTs,liquidity, with funding costs moving higher. At the same time, regulators are asking many regionals to increase reserves & keep more cash on hand.“I think that leaves us [in] a place where regional banks facing slow growth & less loans. The result is that many borrowers will be unable to obtain a mortgage large enough to fully pay off the existing loan as the Fed pretend & extend QT, but with no flow for CRE.

Discipline is key in this turbulent #RealEstate market. Unfortunately you will see more of this in the coming months. Being positioned in specific asset classes will be crucial. #Industrial #SeniorHousing Treeline

You can rest better when you know your money is working for you to get you the best interest. Open a Money Market Fund account today with as low as KSH1000. Visit loftycorban.com to get started. #LoftyCorban #WealthCreation #Investwithus 

From The Wall Street Journal article, “A $10 Billion Real-Estate Fund Is Bleeding Cash and Running Out of Options.” The liquidity challenge facing this fund is attracting attention well beyond the investors in the fund and in the sector as a whole. Its remedial actions — namely, the mix between more borrowing, disposing of properties/assets, and restricting investor redemptions — will influence the extent of the spillover effects to other similar funds, the sector and creditors. #econony #markets #cre #commercialrealestate #realestate

core funding is everything, then comes the core assets and then expenses control

When someone tells you Real Estate is a "non-correlated" asset class, what does that mean? Simply put, it doesn't move in lock step with the Stocks and Bonds markets that may fluctuate day-by-day, etc. Real Estate is not locked into this pattern which is why they say it is a "non-correlated" (to the market) asset. ...and if look by the byline below that even the market is becoming a bit shakier to hedge between stocks and bonds today. #passiveinvestig #realestateinvesting #investwithdwc #dwapitalllc --- My name is Dave Weinstock and I’m the principal and founder of DW Capital. We help working professionals create passive income and build wealth by investing in commercial real estate. Click the “🔔” to follow me for information on real estate and passive investing.

Recently Funded! A few closings from the second quarter of the year. Q2 had a lot of movement with treasuries and overall market changes, but our team was able to execute on quite a few transactions. Being able to make deals in a rollercoaster market is as important as anything from my perspective. Some borrowers came for a cash out, some to avoid maturity, and even partnership restructures/buyouts. We were able to provide favorable terms in order to help borrowers reach their long term goals. Triniti Boykin Daniel Klosk #multifamilyfinancing #sfrealestate #sfr #multifamily #multifamilyinvesting #student #multifamilyrealestate #crefinance #growwithcorevest

Understanding Mutual Funds? 𝐍𝐀𝐕 is Key! 𝐍𝐀𝐕 (𝐍𝐞𝐭 𝐀𝐬𝐬𝐞𝐭 𝐕𝐚𝐥𝐮𝐞) is like the price tag of your mutual fund unit. It tells you the underlying value of all the investments the fund holds. Knowing the NAV helps you: 𝐓𝐫𝐚𝐜𝐤 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞: Monitor how the fund's value changes over time. 𝐂𝐨𝐦𝐩𝐚𝐫𝐞 𝐅𝐮𝐧𝐝𝐬: See how different funds stack up based on their asset value. 𝐒𝐩𝐨𝐭 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬: A lower NAV than market price might indicate a potential buying opportunity. Stay informed, invest smarter! . . . . . . #MutualFunds #InvestingBasics #PrivateEquityJourney #FinancialServices #PersonalFinance #MoneyManagement #FinancialPlanning #FinancialEducation #FinancialFreedom #FinancialSuccess #MoneyTips #FinanceAdvice #investment #trading #stockmarket #trending #fyp #stockmarket #tradingstrategy #reelsinstagram #divadhvik #Custodian #InvestmentGuardian #InternationalFunds #Liquidity #SmartInvesting #MutualFunds #DRIP #InvestmentStrategy

Robust fundamentals, ample liquidity, and attractive yields. Ash Shetty, CFA, Portfolio Manager and Risk Strategist for Developed Market Fixed Income at PineBridge, explains why he believes investment-grade credit is poised for strong risk-adjusted returns. Watch the video for detailed analysis. #investmentgrade #bonds #pinebridge