July Issue, 2014
|The following articles are examples of the warning signs that continue sound in the news for many fixed income investors. As an alternative investment platform, Wilshire continues to build its portfolio in the WFP Income Fund through short term investments with a healthy spread to treasuries and little to no correlation to interest rates or the bond markets.|
Fixed income investors beware! Inflation is getting ahead of the Fed, warns LaVorgna.
June 27, 2014 | By Sue Chang
|Joseph LaVorgna, chief U.S. economist at Deutsche Bank, is warning that inflation could force the Fed to start raising rates sooner than expected.In a note Friday, LaVorgna said potential inflationary pressure on the back of improving unemployment rate is likely to force the Fed to tighten monetary policy sooner than markets anticipate, which will be particularly bad news for a bond market that has been lulled into a false sense of security.When LaVorgna was named MarketWatch’s Forecaster of the Month for May, he warned against accelerating inflation and called on the Federal Reserve to start raising rates.The risk is that the Fed may find itself way behind the inflation curve and in response, move even more quickly to rein in inflation, leading to greater volatility in the market.
Read More: (Market Watch Article)
|Stocks down on Fed official’s rate hike call; sterling up< June 26, 2014 | By Barani Krishnan|
|NEW YORK (Reuters) – U.S. stocks fell on Thursday after a Federal Reserve official said interest rates should rise by early 2015, while the pound gained on speculation UK rates were set to go higher, even as the Bank of England took only mild steps on Thursday to tighten lending.The euro fell to $1.3612 against the dollar after St. Louis Fed President James Bullard said in televised comments that raising rates by the end of the first quarter in 2015 would be appropriate, based on his forecast that U.S. growth will register 3 percent for the next four quarters.”I think Bullard caught most people off guard as the Fed meeting was just last week and there was no explicit reading anyone took from there of a Q1 rate hike,” said Adam Sarhan, chief executive at New York’s Sarhan Capital.
“It’s very possible that he’s on his own or he might have one other Fed official or a minority within the Fed who thinks we should raise rates sooner rather than later,” Sarhan said.
Read More: (Yahoo Finance)
Why now is better than ever to invest with Wilshire…
There is high demand for commercial real estate loans due to the current rise and stability in the market. Yet banks and financial institutions are still a bit skittish to write a loan to finance commercial real estate as property values haven’t been up from the bottom for long.
For the first time in over a decade, a trust deed investor can expect to make up to 9% on a commercial real estate loan to an investor with excellent credit on a commercial property with an extremely low LTR cost ratio. In the past, a bank would jump at such a deal and offer the borrower a loan at less than 6% interest. This opens the door for you, and presents a perfect opportunity to earn secure, low risk returns with Trust Deed Investments through Wilshire Finance Partners.
Press & Resources
IS YOUR PORTFOLIO HEALTHY?
With an inevitable rise in interest rates on the horizon, the following articles are a must read for fixed income investors. Of course we’re biased toward the WFP Income Fund because it has little to no correlation to interest rates, but the strategies discussed are helpful to consider with respect to the other portions of your fixed income portfolio.
Quotes of the Week…
“If the wind will not serve, take to the oars.”
“If you’re offered a seat on a rocket ship, don’t ask what seat! Just get on.”
“A single conversation with a wise man is better than ten years of study.”
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Wilshire Finance Partners specializes in providing services related to real estate finance, private money lending, real estate investments and trust deed investments. The information contained herein is based on sources believed to be reliable, but its accuracy is not guaranteed. Nothing contained herein may be relied upon as legal, accounting or tax advice. Readers should rely on the advice of their own legal counsel, accountants and other advisors to address their specific circumstances. Rates and terms are subject to change without notice. This document may not be reproduced or distributed without the prior written consent of Wilshire Finance Partners. © Copyright 2014. Wilshire Finance Partners, Inc. is licensed by the California Bureau of Real Estate, Broker License number 01523207, and the California Department of Business Oversight, Finance Lenders License number 603 K729.
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