Post by
garyreins on Dec 22, 2023 4:27pm
10 year bond yields
Should be a game changer for this to have a LARGE transaction get done. Those 5.5-6% cap rates for the healthcare asset type is a reassonable buffer over the risk free rate of 3.8% or 3.10% in canada. If artis sold its retail assets just now for 7% cap rate, and HR an office for 5.65%.....these assets should fetch ballpark NAV
Comment by
spacegimp on Dec 28, 2023 4:07pm
Anyone concerned about the 3 month yields staying so high ? Usually signals recessions more so than the 5 or 10 year bond ... but hard to imagine recessions when these governments just don't care about huge deficit spending
Comment by
garyreins on Dec 28, 2023 4:09pm
3 month high means the central banks will be hawkish till at least spring. why would they move down
Comment by
BlueJay2020 on Dec 28, 2023 11:02pm
Not too concerned. A recession would cause rates to drop faster, which would offset any potential impact from the recession itself - I don't think NWH operates in a sector which is itself is particularly sensitive to the economy.
Comment by
Matteo93 on Dec 29, 2023 1:00am
Yeah this is how i see it too, it's too defensive a sector to share beta w other growth sensitive sectors.. Look how it fared during 2016-2018 cycle. It's only major drawdown was when things were getting REALLY bad late 2018 and after all, in a "crash" all correlations go to 1 anyways.. only reason it followed suit eventually.