(Save the date: RealShare New York comes to the Grand Hyatt, New York, NY, October 9.)
NEW YORK CITY-After the Barclays Capital scandal shed light on interest rate manipulation by global financial institutions, the impact on commercial real estate sector has yet to be seen. But given that many construction, short-term and bridge loans are priced over LIBOR, sources tell GlobeSt.com that it has the potential to add costs to borrowers across the spectrum.
“The manipulation hasn’t been large enough to greatly impact the interest in those loans that have been based on LIBOR, but certainly if I were a client and I had a construction loan or some type of bridge product that was floating over LIBOR, I would ask my lender about how much additional interest did I have to pay because of this Barclays situation,” Bill Hughes, SVP and managing director of Marcus & Millichap Capital Corp., tells GlobeSt.com.
For much of the industry, the initial reports of LIBOR manipulation by large banks present a strong d
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