If The Fed Raises Rates 1% What's The Impact On Note Prices?
I didn't know if note values move like bond markets. If the Federal Reserve raises rates for instance by 1%, bond values erode if you go to sell. Is the impact as dramatic on private notes?
Thanks!
Theoretically it reduces the note price just like a bond. The difference is that the real estate note market is a lot less efficient than the corp. bond market so the discount in RE notes is already larger and this hides the reduction somewhat.
Thanks for the reply...that's exactly what I have deduced from my research.