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A floating rate loan
is typically indexed to the London Inter bank
Offered Rate (LIBOR), which tracks and
approximates the Federal Funds rate. Many recent
borrowers have chosen floating rate loans to
take advantage of the historically low interest
rates of the past few years. Floating rate loans
often feature minimal or no prepayment
penalties. They are particularly attractive to
buyers with a two to four year financing
horizon, such as acquisition of a property going
though a reposition or a turnaround. Global can
help borrowers exploit these flexible structures
for their immediate short-term utility or as an
astute means of strengthening their long-term
strategy. |
