WESTCAP CORP
November 2014 Market Update
A lot of good news lately, including positive 3^rd Q earnings reports, improved home sales, continued low interest rates and a stronger than expected 3^rd Q GDP at 3.5%. All this good news and the FED indicates that they will stop buying bonds and continue to keep rates low for some time to come. This is being driven by the fact that the real unemployment rate (U6) is still high at 11.5% at the end of September, which Janet Yellen continues to mention, and indicates that interest rates will remain low until the U6 number improves. The private sector will be expected to produce new jobs as the government continues to trim jobs. The good news is that the real unemployment rate is below 12% for the first time since the recession. http://finance.yahoo.com/news/september-jobs-report-indicates-stronger-201927521.html;_ylt=AwrSyCT9blJUE1cA306TmYlQ

The FED is also concerned about the slower than desired recovery of the housing market. Lower rates will help, but Dodd Frank regulations are making it incredibly difficult to qualify for a home loan and have stymied home sales. Lower oil prices are certainly helping keep inflation under control, and with the US poised to surpass Saudi Arabia as the top global oil producer by 2015, oil prices should continue to remain low for some time to come. Finally, the FED can afford to keep interest rates at present levels, because our interest rates are higher than the other global economic powers, which have been forced to keep their interest rates lower than the US in hopes of stimulating their struggling economies, causing US Treasuries to continue to remain an attractive investment globally. The FED is easing on stimulus, while foreign investors added more Treasuries in August than any time this year.

The following is a link to an excellent article on the present state on the economy and forecast of where interest rates may be headed. http://www.bloomberg.com/news/2014-11-03/bond-market-demand-for-treasuries-means-nobody-mourns-end-of-qe.html 

FEATURED TRANSACTIONS

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WESTCAP offers the ability to obtain loan sizes ranging from $1,000,000 to $200,000,000 nationwide.   WESTCAP provides fixed and floating rate debt programs for a variety of loan terms and purposes including long term permanent loans, short term permanent loans, construction loans, mezzanine loans (including construction mezzanine loans), bridge/rehab loans, as well as joint venture equity placement for all types of income properties including:   Retail,  Office,  Medical Office,  Industrial,  Self Storage   Multifamily,  Senior Housing,  Student Housing,  Hospitality    WESTCAP serves as a correspondent to 15  life insurance companies and other sources of capital in order to meet all of our client's financing needs. Most of these correspondent relationships date back over 25 years, including Sun Life of Canada for which we have been the exclusive correspondent in Southern California for almost 30 years.

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We are always available to discuss potential financing and or equity requirements, or to  provide a written quote to help convince a seller that you, or your client, are the most qualified buyer.  We will also handle any size transaction, as we are interested in establishing long-term relationships as early as possible.

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Steve Bridges Executive Vice President WESTCAP CORP 9960 Irvine Center Drive Irvine, CA 92618 Office: (949) 387-9061  Cell: (949) 235-1540 sbridges@westcapcorp.com www.westcapcorp.com CA RE Broker: 00465840

sbridges@westcapcorp.com