avulse
uh-VUHLS
To pull off or
tear away.
From Latin
avellere (to tear off), from a- (away from) + vellere (to pull,
pluck).
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TIP OF THE WEEK
TIP OF THE WEEK
Several pages have
been avulsed recently from SBA’s playbook the SOP (Standard Operating
Procedures) making it easier and easier for both borrowers and lenders to
participate in the SBA’s loan programs.
Industrial real
estate’s avulsion from the recession appears complete. According to CoStar,
vacancies now sit lower than pre-recession levels in the industrial property
sector.
If you would like
a copy of CoStar’s Commercial Real Estate Sales Indices report for May 2014, let
me know.
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Indices:
Indices:
PRIME
RATE= 3.25%
SBA
LIBOR Base Rate May 2014 = 3.15%
SBA
Fixed Base Rate May 2014 = 5.39%
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SBA 504 Loan Debenture Rate for May
SBA 504 Loan Debenture Rate for May
The
debenture rate is only 3.00% but note rate is 3.05% and the effective yield is
5.08%.
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AHEAD OF THE YIELD CURVE
AHEAD OF THE YIELD CURVE
Will
the Federal Reserve ever avulse itself of low interest
rates?
The
last time the Federal Open Market Committee met on monetary policy they said
that they might have to keep “the target federal funds rate below levels the
Committee views as normal in the longer run.”
Keep
your eyes and ears open for this week’s release of the minutes from the Fed’s
last meeting on monetary policy. Ever since the Fed moved up the release of the
minutes to three weeks after a meeting from six in January 2005, people parse
each word looking for clues to policy. This became a habit after former Federal
Reserve chairman Alan Greenspan once remarked:
“ I know you think you understand what you thought I said but I'm not sure you
realize that what you heard is not what I meant”
The
bond market does not seem to think interest rates are going up anytime
soon.
At
last week’s $16 billion dollar auction of 30 year Treasury bonds, the 30 year
bond sold at a yield of 3.44%.
The
long bond yield has dropped more than 50 basis points since the start of the
year. April’s $13 billion auction of 30 year Treasury bonds sold at a yield of
3.525%. In March the auction drew a yield of 3.630%
compared to February’s yield of 3.69%. January’s auction sold at a yield of
3.899% compared to December’s 3.90%.
Here is what the
30 year Treasury bond has been doing and this week’s interesting little
table:
2001-
5.49
2002-
5.43
2003-
ND
2004-
ND
2005-
ND
2006-
4.91
2007-
4.84
2008-
4.18
2009-
3.89
2010-
4.61
2011-
2.89
2012-
2.77
2013-
3.25
The 30 year
Treasury bond is currently at 3.34
percent.
What does all this
mean?
I don’t
know.
Traders
are betting the Federal Reserve won’t raise interest rates any time
soon.
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OFF BASE
OFF BASE
We
should all be avulsing ourselves from work and the office this Monday as it is
Memorial Day.
According to the
Federal Reserve, here is our remaining holidays for
2014:
Memorial Day May
26
Independence Day July 4
Labor Day September 1
Columbus Day October 13
Veterans Day November 11
Thanksgiving Day November 27
Christmas Day December 25
Independence Day July 4
Labor Day September 1
Columbus Day October 13
Veterans Day November 11
Thanksgiving Day November 27
Christmas Day December 25
To
many this marks the beginning of summer although technically summer really does
not start until June 21st, the summer solstice, which is the day with
the most hours of sunlight during the whole year. After that, the days start
getting shorter and shorter.
To
all of us, it should be a day to remember those who died serving our country.
The holiday, which is celebrated every year on the final Monday of May, was
formerly known as Decoration Day and originated after the American Civil War to
commemorate the Union and Confederate soldiers
who died in the Civil War.
