INTEREST DECLINED LAST MONTH BUT CREDIT MARKETS CONTINUED TO BE TIGHT
By Murray W. Wolf
A mid the anticlimactic “news” earlier this month that the United States is officially in a recession (and has been since December 2007), recent central bank reductions to the Federal Funds rate helped push interest rates lower, and spreads widened for the Commercial Mortgage Backed Securities (CMBS) market.
The Bond Market Association (BMA) rate, which tracks short-term tax-exempt bonds, was 0.85 percent on Dec. 12, when these statistics were gathered. That compares with 1.26 percent on Nov. 7. Likewise, the 1-month LIBOR and 10-year Treasury rates were 1.04 percent and 2.57 percent, compared with 1.62 percent and 3.82 percent last month.
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