The benchmarks real estate capital is priced against, published each business day by the U.S. Treasury and the Federal Reserve Bank of New York, plus yield maintenance and defeasance estimates on today’s curve.
Published each business day by the U.S. Treasury and the Federal Reserve Bank of New York, with the change from a month earlier.
The Federal Open Market Committee releases its decision at 2:00 pm Eastern on the last day of each meeting. Source: Federal Reserve meeting calendar.
| Meeting | Decision | Target range after |
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| Rate | 1-Mo Chg (bp) | |
|---|---|---|
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The Federal Reserve publishes these the following business morning, so they run one business day behind the Treasury curve. Prime is the target range upper bound plus 3.00%, the convention U.S. banks have followed since 2008, so it moves the day the Fed does. The 30-day average SOFR is the published, license-free benchmark many floating-rate loans use. Source: Federal Reserve Bank of New York.
| Yield | 1-Mo Chg (bp) | |
|---|---|---|
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Daily par yield curve rates. Source: U.S. Department of the Treasury.
| Yield | 1-Mo Chg (bp) | |
|---|---|---|
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Inflation-protected Treasury yields: the real return after inflation. Source: U.S. Department of the Treasury.
Estimate yield maintenance or defeasance against today’s Treasury curve. Change any number and the result updates.
Loading today’s Treasury curve…
Estimates for discussion only, not a quote or advice. Yield maintenance discounts the remaining scheduled payments (and the balance at maturity or the open date) at the interpolated Treasury yield for the remaining term plus any spread, and shows the greater of that premium and the stated minimum. Defeasance prices a portfolio of Treasuries that replaces the same payments, using today’s curve; an actual defeasance uses specific securities and adds consultant, legal and custodial costs. Your loan documents govern the real number. Talk to Carlton about refinancing.
Rates are the starting point. What a sponsor actually gets depends on the asset, the structure and who is at the table.
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