X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Chris Volk

Last year when the ten-year Treasury rate hit 350, many people in the market were convinced that the ten-year would stay above 3% for the foreseeable future. But then the Treasury rate dropped and net lease REIT Store Capital felt compelled to make a move. So it did a Treasury lock at 290 in order to issue debt. “We were happy with where ten-year was and we were happy issuing debt at that spread,” Chris Volk, president and CEO of the company, says. “So we locked in. Of course, as it turned out, we lost money on the lock.” Because with impeccable timing, the Treasury promptly dropped to 240 after STORE Capital’s lock.

Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.

More from this author

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.