TaliMar Financial | Where Are Trust Deed Rates Headed?

In this video, Brock VandenBerg, President of TaliMar Financial, provides guidance on where rates are headed from Trust Deed investments. With the recent rate increases by the Federal Reserve and the decision to scale back the purchases of real estate debt, the US economy should see an increase in rates in the short term. However, those rate increases don’t always show up in trust deed investments.

The rates offered for trust deeds are typically more driven by the availability of investor capital. The more capital there is to invest in trust deeds, the more downward pressure on trust deed investments. However, as other investment options become more appealing, which could be a result of increasing rates on other fixed investment options, the amount of capital will decrease and therefore increase rates. 

So at the end of the day, increases in general rates in the US economy may or may not affect rates for trust deed investments. It will be primarily dependent upon the supply of capital available for trust deed investments.