(Save thedate: RealShareNew York comes to the Grand Hyatt, NewYork, NY, October 9.)
NEW YORK CITY-After the Barclays Capital scandal shed light oninterest rate manipulation by global financial institutions, theimpact on commercial real estate sector has yet tobe seen. But given that many construction, short-term and bridgeloans are priced over LIBOR, sources tellGlobeSt.com that it has the potential to add costs to borrowersacross the spectrum.
“The manipulation hasn’t been large enough to greatly impact theinterest in those loans that have been based on LIBOR, butcertainly if I were a client and I had a construction loan or sometype of bridge product that was floating over LIBOR, I would ask mylender about how much additional interest did I have to pay becauseof this Barclays situation,” Bill Hughes, SVP andmanaging director of Marcus & Millichap CapitalCorp., tells GlobeSt.com.
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