These are: economic fundamentals, inflation expectations (good; Japan is likely to inflate the economy by printing yen, and traditionally real estate does well during inflationary periods, interest rates (good; super low interest rates, ability to borrow (mixed; some progressive Japanese institutions will lend, but most are playing defense on account of their existing problems, positive carry
good; the cost of borrowing in Japan is typically less than the yield, and lastly, relative value negative).
Now that the rental market is better, it would be wrong to penalize the sponsor who can now rent them and have a positive carry
6 million in positive carry
forward (a modest 1% of operations), as spending reportedly stays below budget.
The acquisition of this portfolio presents a positive carry
between real estate initial yields and the marginal cost of debt highlighting the ability of alstria to execute accretive deals' added Alexander Dexne, CFO of alstria, 'it will have a positive impact on our FFO and thus on our dividend for 2008.
8 million of positive carry
on interest rate swaps which economically hedge the trading portion of the Company's portfolio.
With volatility's rise, UBS Global Asset Management's analysis indicates that the overvaluation of positive carry
currencies, which have been driven further upward by the public's high carry trade appetite, has a high likelihood of correcting in the not-too-distant future.
Utilizing gestation "repo" financing the firm has the ability to borrow at rates that are currently lower then 4% creating a positive carry
on loans that have average rates of 8.
During the first quarter of 2007, the Company's net interest income, plus the positive carry
from interest rate swaps, was $64.