Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Madison International's Ronald Dickerman Recent movement in the 10-year Treasury “is anticipating some of the moves that are going to happen in 2017,” says Dickerman.

NEW YORK CITY—“The Trump election really bought the Fed a lot of cover,” says Ronald Dickerman, founder and president of Madison International Realty. He notes that prior to the Federal Reserve’s decision Wednesday to implement its second increase in the federal funds rate since 2008—a year after implementing the first such increase—yields on the 10-year Treasury had increased around 100 basis points post-election. “Most commercial real estate loans are keyed more to the 10-year than the federal funds rate,” he says.

“Before the election, the Fed was walking a tightrope, because they were trying to decide whether they could raise rates or keep them the same, and everyone knows this lower-for-longer environment has gone on much longer than people expected,” Dickerman tells GlobeSt.com. “Now the game has changed, and I don’t think the fact that the Fed raised the rate another 25 bps was the big story.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

More from this author



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 © 2021 ALM Media Properties, LLC. All Rights Reserved.