Spreads have gradually tightened, through mixed economic signals and evolving tariff policies from their recent peaks during liberation day tariff announcements. Further, the week-to-week spread movement is surprisingly consistent and measured when compared to the week-to-week movement prior to tariff announcements. Both demonstrate borrower and lender resilience; lenders appear to be more comfortable that low-leverage loans will perform under a variety of potential economic outcomes.
Source: CRE Loan Spreads Stay Steady Ahead of Fed Rate Cut Expectations
