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.

Read More

About the Author

Adrian Ng

Adrian is Director, Hedging and Capital Markets in the Global Real Estate sector of Chatham Financial. Since moving to the US in 2017, he has worked with the largest real estate managers in currency and interest rate hedging. Before the relocation, he was based in Singapore, 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, completed the Corporate Certificate in Real Estate Financial Analysis from the NYU Schack Institute of Real Estate, and is a MBA candidate at the Indiana University Kelley School of Business. He is a CFA charterholder and a Certified FRM.

More Content by Adrian Ng
Previous Article
Defeasance FAQs
Defeasance FAQs

When deciding to prepay your fixed rate CMBS debt, whether through yield maintenance or defeasance, most bo...

Next Article
Case study: Mezzanine debt
Case study: Mezzanine debt

A nationwide owner of hotels' portfolio was leveraged with a number of long-term low fixed interest rate lo...

Get current treasury and
swap rates from Chatham