Welcome to our CC newsletter, where we bring you the latest updates and analysis on the market, economy, and investment landscape. In this edition, we’ll examine the recent developments impacting the US corporate borrowing plans, explore the surprising rise in interest rates and its effects on debt-laden companies, and share recommended reads to keep you informed and prepared. Additionally, we have some thought-provoking insights from Warren Buffett himself and an introduction to the concept of debt funds. Let’s dive in!
Economy Heat Check
As of 6/21/2023 market close, unless otherwise stated.
Multifamily Borrowers Face Further Scrutiny From Banks, GSEs
As economic and capital markets events have unfolded this year, banks, in particular, have become increasingly concerned about having enough capital to service current portfolios and avoiding future risk. So, in addition to making fewer loans, they are offering less in proceeds prioritizing the most profitable assets.
Warren Buffett gets gloomy: America’s ‘incredible period’ is coming to an end.
Here’s what nervous investors can do right now
According to the world’s most famous investor, the “incredible period” for the U.S. economy has been coming to an end in recent months. And even his own company, Berkshire Hathaway, isn’t immune.
A slowdown in the junk-rated loan market is hitting US corporate borrowing plans. [Financial Times]
Rising interest rates caught private equity firms by surprise, and their debt-laden companies are paying the price. [Bloomberg]
Short sellers betting against the US stock market have lost about $120 billion this year, per the WSJ. [ Yahoo Finance]
More From Citizen Capital
- Understanding different types of debt investments
- Assessing risk and return potential
- Exploring investment opportunities
- Maximizing yield in a volatile environment
- Building a diversified debt portfolio
- Q&A Session
THE BENEFITS OF PRIVATE DEBT INVESTING
- Attractive Returns – 7-10%
- Low Volatility – Predict The Future By Locking In Your Returns For Up To 3 Years
- Diversification – Loans Made Across Asset Types And Geographic Markets
- Reduced Risk – We Can Take Back Any Property To Sell Or Improve And Hold If Needed
- Flexibility – Investors Can Select The Amount Of Time They Desire, Not Locked Up For 5-7 Years
- Potential For High Yields – The Longer The Term Selected, The Higher The Annualized Return
- Predictable Cash Flows – Peace Of Mind Through Stock Market Swings
- Security – Backed By Real Estate And Real Assets, At Low Loan To Value Criteria
- Access To Exclusive Deals – Large Pipeline With Prior, Best In Class Borrowers
- Professional Management – Fully Vetted Opportunities And A Skillset To Take Over An Asset If Needed
We hope the insights and articles have provided valuable information and shed light on the ever-changing economic landscape.
If you have any questions or would like to explore these topics further, our investment team is available for a short meeting. Click here to schedule a conversation.
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