Discussions about debt have become largely up-and-down discussions. Things are better or, more often these days, things are worse. That binary treatment though is inadequate, making planning and strategy blunt instruments.

A recent MSCI capital trends report broke down aspects of debt into observations that help explain what is happening in the markets.

First, borrowing costs for funds continue to rise. That should be fairly obvious because all borrowing costs are increasing. "With rising interest rates and higher costs for new debt, the borrowing costs on outstanding asset-level debt for funds in the MSCI/PREA U.S. AFOE Quarterly Property Fund Index have been increasing," they wrote. "The rate reached 4.7% at the end of the second quarter, the highest level since 2012."

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