Financing Solutions
At Providence Real Estate Advisors, we offer comprehensive financing solutions tailored to meet the unique needs of our clients. Our extensive network of lenders and deep industry expertise allow us to secure optimal financing terms for a wide range of property types.
Treasuries / Swaps - Detailed Information
What are Treasuries and Swaps?
Treasuries are debt obligations issued by the U.S. Department of the Treasury. They are considered one of the safest investments as they are backed by the full faith and credit of the U.S. government.
Swaps, specifically interest rate swaps, are derivative contracts where two parties exchange interest payments. The SOFR (Secured Overnight Financing Rate) swap is a type of interest rate swap that uses SOFR as the reference rate.
| Term | U.S. Treasury Yield | SOFR Swap Rate | Spread |
|---|---|---|---|
| 1-Year | 5.420% | 5.375% | 0.045% |
| 2-Year | 4.875% | 4.810% | 0.065% |
| 5-Year | 4.072% | 3.798% | 0.274% |
| 7-Year | 4.113% | 3.757% | 0.356% |
| 10-Year | 4.188% | 3.761% | 0.427% |
| 30-Year | 4.296% | 3.850% | 0.446% |
Market Insights
The yield curve shape provides insights into economic expectations:
- A normal yield curve (upward sloping) suggests economic expansion.
- An inverted yield curve (downward sloping) might indicate a potential recession.
- A flat yield curve suggests uncertainty in the economy.
Currently, the yield curve shows [AI to analyze based on the data and provide insight].