CRED iQ Reveals Risks and Opportunities across $25 Billion in Floating Rate Loans

Data & analytics firm launches new dataset to unlock opportunities across adjustable-rate commercial real estate debt.

RADNOR, Pa., March 29, 2023 /PRNewswire/ -- CRED iQ, a data, analytics and valuation platform serving the commercial real estate finance and investment communities announced an important expansion in the company's core data. 

Learn more about the Floating Rate Debt Whitepaper & Databook here

CRED iQ analyzed floating-rate loans securitized in the Commercial Real Estate Collatealized Loan Obligation ("CRE CLO") universe and isolated key parameters of interest rate cap agreements. Depending on client perspective, interest rate cap agreements can be a source of credit risk or serve as a basis for opportunity in prospecting and closing CRE transactions.

Loan cap agreements have skyrocketed in value (or cost) as interest rates have climbed. While floating-rate loans face challenges in today's marketplace, the rate cap agreements represent a potentially meaningful asset. Investors, owners and brokers can monetize these instruments and thereby create significant value in a CRE transaction. 

"Interest rate cap agreements in our dataset have termination dates ranging from 2023 to 2026. Of those rate cap agreements with expiration dates in the next four years, 40% have expiration dates that occur prior to respective loans' maturity dates," said Marc McDevitt, Senior Managing Director of CRED iQ.

CRED iQ's enhanced dataset covers approximately 700 rate cap agreements that provide $30 billion in protection. The curation of the dataset was preempted by client demand and identified as a necessity in the current interest-rate environment.

"Floating rate and bridge loans represent some of the most challenging territory faced by CRE owners and investors," indicated Mike Haas, Co-Founder and CEO of CRED iQ.  "There are also opportunities within the loan structures that we have attempted to unlock in our latest release."

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion in transactions and data covering CRE, CMBS, CRE CLO, Single Asset Single Borrower (SASB), and all of GSE / Agency.

To learn more about CRED iQ's products and services, please contact [email protected] or (215) 220-6776

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SOURCE CRED iQ

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