TSX:BPO.PR.A - Post by User
Post by
Carenaon Oct 23, 2024 8:06am
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Post# 36278092
Interest Rates
Interest RatesGood morning,
A blurb....
The 5 year chart on the US 10 year shows a "higher for longer environment" and I think is a healthy thing for the US economy. I think it is even healther that what appears like a "soft landing" is against a backdrop where the Fed continues its monthly US$35 billion QT program.
In regards to BPY/BPO, it is becoming more clear that office assets seem to have bottomed. I have stated previously that my BPY proxies through its troubles have been SLG and VNO. Both of these stocks are up dramatically this year and have actually continued to climb during the 10 year yield spike since the Fed meeting back in September. All this could change but it certainly seems like things are pointed in the right direction.
Personally, I have not seen one front page article in months and months about some company "giving the keys back on buildings" or "gating of redemptions" in real estate funds. Furthermore, concerns about office loan exposures in the U.S. banking system seem to have settled as both the money center banks and regional bank share prices have seen solid gains this year along with solid earnings reports.
This is all good news for our BPO prefs and I think this has been a huge tailwind for the resurgence in the BN group stock prices.
Have a great day,
Carena