Rising U.S. hedging costs decrease Asian real estate investment

July 9, 2018 Adrian Ng



Rising U.S. interest rates and an uncertain outlook for the dollar have driven up hedging costs significantly over the past year for investors from Japan and South Korea, making it more difficult for them to compete for U.S. real estate deals. With two more U.S. interest rate hikes planned for 2018, and rates in Japan and South Korea expected to remain static, hedging costs will likely increase further.

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About the Author

Adrian Ng

Adrian works in the hedging and capital markets group in the Global Real Estate sector. Before moving to the US headquarters in 2017, he was a member of the Singapore team serving private equity clients in the Asia-Pacific region. Prior to joining Chatham, he was an economist at the Monetary Authority of Singapore where he conducted financial markets surveillance, performed economic forecasting, and contributed to monetary policy formulation. He graduated from Dartmouth College with a BA in Economics and is a CFA charterholder and a Certified FRM.

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