Yield PRO TV Rate Desk May 15, 2020

May 15, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. Bond markets, industry valuations, and risk mitigation with debt service reserves.

Rate Desk Notes May 15, 2020
• Indices up
• Crude up $29.71
• UST yields .62
• Thresholds set on MF secondary market securities
• 223(f) 2.50%
• 221(d)(4) 3.15%
• Fannie 3.20%
• Freddie 3.20-3.35%
• Unrated bond market dead (LIHTC, hospitals, infrastructure projects)
• BBB bonds priced 5.25-5.50
• MF industry facing 1-2 year cash flow crunch
• No long-term valuation issues
• LTV are much lower
• DS reserves for risk mitigation
• Upcoming topics:
o Former Goldman Sachs trader on negative interest rates
o LIHTC equity bridges and cash collateralized bonds
o Construction costs senior housing