What is everyone seeing in the market these days?
The 5 year bond went absolutely bonkers in the past month increasing by effectively 50bps in the past month and jumping around like crazy. The volatility makes it even harder to underwrite your deals given the cost of capital is bouncing.
Is anyone getting deals done or is it pretty much standstill until the dust settles?
How is everything thinking about deals from a debt perspective? Is a 2 year hold at a higher rate then refi thereafter?
O&G and mining deal flow has been strong. Lots of live mandates right now. Pandemic generated a lot of CF for resource extraction companies (that were well positioned) and management teams have been sitting on massive war chests of funds riding out market inflation concerns.
They are now active in the market looking to acquire assets, as M&A premium are at a discount to development costs/timelines.
large brokerage volume (capital markets) down 40% YoY
Volume is WAY down. There's still deals happening but mostly off market or highly coveted development land. Income producing stuff is mostly sidelined.
What asset classes are you looking at?
We are in the hotel space and yes deals are tough to get done - not dead but just tough.
The shop I work at (multi-family) only looks at deals with assumable debt or properties that can get CMHC financing. It's been a tough year though so far because vendors still have 2021 price expectations.
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