Amol Dhargalkar on CNBC's Squawk Box on navigating higher-for-longer rates
Summary
Amol Dhargalkar, Chairman and Managing Partner at Chatham Financial, joined CNBC’sSquawk Box to discuss how the current “higher-for-longer” interest rate environment is shaping investor behavior and capital markets.
While higher rates continue to challenge long-duration and capital-intensive asset classes, Dhargalkar emphasized that the environment also presents new opportunities. “This is a market that rewards flexibility,” he noted, pointing to the renewed value of short-term instruments such as Treasury bills and money market funds, which are now offering competitive returns with lower risk. He also discussed broader implications, including the increased cost of government debt and potential changes to corporate tax policy. Dhargalkar noted that these factors underscore the importance of capital structure discipline and active interest rate risk management.
“This is a fundamentally different environment than we've seen in recent years,” he said. “Investors and businesses who proactively reassess their strategies will be well-positioned to navigate it successfully.”
— Amol Dhargalkar on CNBC Squawk Box
Our interest rate risk expertise
Interest rate risk can be an important factor in the performance of a single real estate asset or a portfolio of properties. Chatham's interest rate risk management advisory services offer the expertise and knowledge you need to make informed decisions about the type of debt you use and how you manage the interest rate risk associated with that debt, whether it’s risk on current floating-rate debt, refinance risk on fixed-rate debt, or risk on prepayment penalties.
With Chatham on your side, you can be confident that you’re getting the best possible terms, while maintaining the integrity of your all-important banking relationships. We provide complete guidance on strategy and execution, along with access to tools for monitoring the hedge for the life of the transaction.
Our highly experienced professionals, supported by industry-leading technology, ensure the best pricing, maximize transparency, and offer you insights into market trends.
Want to learn more?
Contact our team to discuss how Chatham can help with your treasury and risk management needs.
Contact usDisclaimers
Chatham Hedging Advisors, LLC (CHA) is a subsidiary of Chatham Financial Corp. and provides hedge advisory, accounting and execution services related to swap transactions in the United States. CHA is registered with the Commodity Futures Trading Commission (CFTC) as a commodity trading advisor and is a member of the National Futures Association (NFA); however, neither the CFTC nor the NFA have passed upon the merits of participating in any advisory services offered by CHA. For further information, please visit cf.com/legal-notices.
Transactions in over-the-counter derivatives (or “swaps”) have significant risks, including, but not limited to, substantial risk of loss. You should consult your own business, legal, tax and accounting advisers with respect to proposed swap transaction and you should refrain from entering into any swap transaction unless you have fully understood the terms and risks of the transaction, including the extent of your potential risk of loss. This material has been prepared by a sales or trading employee or agent of Chatham Hedging Advisors and could be deemed a solicitation for entering into a derivatives transaction. This material is not a research report prepared by Chatham Hedging Advisors. If you are not an experienced user of the derivatives markets, capable of making independent trading decisions, then you should not rely solely on this communication in making trading decisions. All rights reserved.