To say that the times we’re living through are challenging is an understatement. Capital markets are feeling the pinch from rising inflation, the ongoing conflict between Russia and Ukraine and the looming increase in interest rates – which have aided the 10 year Treasury to break 2.00%, a level not seen since mid-2019.
This has had a direct impact on all types of financings as lenders of all stripes have been forced to increase spreads and include an uncertainty premium to all bids. Borrowers on the other hand are being forced to reconsider their financing strategy, if not scrap it all together and sit on the sidelines to wait out the storm; if they are fortunate enough to have that option.
