Indicative Fixed Rates

We have seen commercial rates quoted as follows;

5 year-cost of 3.14% plus margin
7 years- cost 3.57% plus margin
10 years-3.96% plus margin

These are of course indicative and subject to change daily; however- whilst they demonstrate rates are increasing the rate of increase is slow. Given typical margin expectations from lenders anywhere from 3.5% above cost of funds to 5% above-pay rates c 7- 7.5% not untypical.  On an historic basis for fixed rate money this isn’t too bad- it just feels like it when we know base rate is only 0.5% and 1 month Libor not that much more.

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Published:
January 17, 2011 / 11:17 am
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