In a subscription article on August 21, the Wall Street Journal takes a hard look at the commercial paper market, and why many experts feel the Fed's efforts of last week have not entirely resolved the issues at hand. According to the article:"The Fed on Friday cut its discount rate by half-percentage point in an attempt to alleviate the pressure on banks that found their access to the commercial paper market shut off amid a crisis of investor confidence."
Not seeing a quick fix in site, the commercial paper market is going to be something to keep a close watch on in the months ahead. The article adds, "As the asset-backed commercial paper market continues to reel from the credit crunch that has upended confidence throughout financial markets, investors have channeled their funds into short-term Treasurys that carry a maturity of six-months or less."Here at Five Stars Mortgage, our new Hard Money Commercial Loans are designed to help you make sense of the market changes and plan for your very best long term strategy in the commercial real estate market.
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