Falling Rates: A Salve for Real Estate?
The Fed has begun a long-awaited cutting cycle, potentially providing some relief to rate-sensitive sectors. Goldman Sachs’ Lotfi Karoui, Chief Credit Strategist, Head of Credit Research Group, and Jeff Fine, Global Co-Head of Alternatives Capital Formation explain the impact of falling rates on commercial real estate as well as the implications for housing in the latest Goldman Sachs Exchanges podcast.
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Alternative Investments are subject to less regulation than other types of pooled investment vehicles such as mutual funds. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains, and such fees may offset all or a significant portion of such Alternative Investment’s trading profits. An individual’s net returns may differ significantly from actual returns. Alternative Investments are not required to provide periodic pricing or valuation information. Investors may have limited rights with respect to their investments, including limited voting rights and participation in the management of the Alternative Investment.
Alternative Investments often engage in leverage and other investment practices that are extremely speculative and involve a high degree of risk. Such practices may increase the volatility of performance and the risk of investment loss, including the loss of the entire amount that is invested.
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