Skilled Nursing News September 18, 2024
The Federal Reserve cut interest rates by half a percentage point on Wednesday, marking the first reduction in four years and reflecting a shift aimed at supporting economic growth as inflation shows signs of moderation. Financial experts in the nursing home industry hailed the Fed’s action as “welcome relief.”
“[This] is welcome relief for skilled nursing borrowers with variable rate debt, and hopefully signals future short-term rate decreases still to come,” Steve Kennedy, executive managing director at VIUM Capital, told Skilled Nursing News. “Lower short-term rates immediately strengthen variable-rate borrowers’ debt service coverage levels and, in some cases, enable loans to be covenant compliant.”
The new rate, set between 4.75% and 5%, comes amid ongoing predictions with some analysts anticipating...
Today's Sponsors
Today's Sponsor