Realty411 Magazine Featuring Scott Meyers | Page 91
Rate Cuts and Negative Yields
As of 2019, there’s reportedly
an estimated $13.64 trillion
dollars worldwide that
generates negative yields or
returns for the investors who
hold government or corporate
bonds. This same $13.64 trillion
dollar number represents
approximately 25% of all
sovereign or corporate bond debt
worldwide.
On July 31, 2019, the Federal
Reserve announced that they cut
shortterm rates 0.25% (a quarter
point). Their new target range for
its overnight lending rate is now
somewhere within the 2% to
2.25% rate range. This is 25 basis
points lower than their last Fed
meeting decision reached on June
19th. This was the first rate cut
since the start of the financial
recession (or depression) in
almost 11 years ago dating back
to December 2008.
There are three additional
Federal Reserve twoday meeting
dates scheduled for 2019 that
include:
● September 1718
● October 2930
● December 1011
It’s fairly likely that the Fed will
cut rates one or more times at these
remaining 2019 meeting dates. If so,
short and longterm borrowing costs
may move downward and become
more affordable for consumers and
homeowners. If this happens, then it
may be a boost to the housing and
financial markets for so long as the
economy stabilizes in other sectors
as well such as international trade,
consumer spending and the retail
sector, government deficit spending
levels, and other economic factors
or trends.
We shall see what happens
between now and yearend in 2019
and beyond.
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Meet
Rick Tobin
Rick Tobin
has a
diversified
background in
both the real
estate and
securities fields for the past 30+
years. He has held seven (7)
different real estate and securities
brokerage licenses to date, and is a
graduate of the University of
Southern California. Rick has an
extensive background in the
financing of residential and
commercial properties around the
U.S with debt, equity, and
mezzanine money. His funding
sources have included banks, life
insurance companies, REITs
(Real Estate Investment Trusts),
equity funds, and foreign money
sources. You can visit Rick Tobin
at RealLoans.com for more details.