Fed’s Move Drives Down Bond Market, but Breaks Commercial Loan Dam

by Isaac Benmergui, Esq on October 10, 2012

As the Fed moved to start buying U.S. Treasury and mortgage bonds to the tune of $40 billion per month, investors will be looking for profits elsewhere opening the doors to more available commercial monies for lending.

Investors are going to have to take on riskier investments in order to make money, which will lead to some high-budget projects getting off the ground much faster than if conventional lending by banks was used.

“Florida is a real estate state,” said Ken Thomas, a Miami bankring analyst and economist, noting that 38% of all Florida’s bank deposits are clustered in Miami-Dade, Broward and Palm Beach counties. “This is where the money is, especially in Dade,” he added.

Developers that typically build in South Florida are hopiing the Feds’ action keep the area rebounding commercial and industrial sector healthy  with plenty of cash flow available for their proposed projects.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

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