IGA Capital Weekly Market Update
- Joshua Hawley
- Apr 8
- 2 min read
April 7, 2025
Source: Bloomberg, Walker & Dunlop, Fannie Mae, Freddie Mac
Macroeconomic Overview
Global markets began Q2 2025 with a cautiously optimistic tone. While inflation data is anticipated later this week, current market pricing reflects moderate disinflation, a weakening dollar, and easing long-term treasury yields—setting the stage for a recalibration of forward risk appetite in both public and private credit markets.
Bond Markets & Treasury Forecasts
U.S. 10-Year Treasury yields continue to compress. As of this week:
10Y Yield: 4.05% (↓ 15bps from last week)
5Y Yield: 3.72% (↓ 21bps)
Swap spreads also tightened across the curve.
Bloomberg's latest analyst consensus shows 10-year Treasury yields trending lower into 2026, reflecting softening inflation expectations and rate cut assumptions by the Fed.
Source: Bloomberg / Walker & Dunlop Forecast Survey
Agency Loan Pricing – Fannie Mae & Freddie Mac
Despite rate volatility, agency spreads remain firm:
Fannie Mae DUS (Fixed Rate, Tier 2 Pricing):
Term | Gross Rate |
5-Year | 5.42% |
7-Year | 5.41% |
10-Year | 5.47% |
15-Year | 5.75% |
Freddie Mac pricing remains comparable, with 10-year loans quoting between 5.35% and 5.55% across underwriting tiers.
Equity Markets & REIT Performance
REIT valuations continue to face downward pressure. Equity Residential (EQR) and AvalonBay (AVB) both hovered near 52-week lows, while Residential Mortgage REITs like AGNC and TWO now yield upwards of 16%, reflecting heightened credit spread risk in mortgage portfolios.
REIT | Price | Dividend Yield |
AGNC | $8.60 | 16.75% |
NLY | $18.13 | 14.62% |
CIM | $11.01 | 13.26% |
Multifamily REITs remain relatively more stable, averaging 3.7% – 4.5% dividend yields.
FX & Commodities
Gold: $3,009/oz (↓3.2% WoW)
Oil (WTI): $60.09 (↓13.9% WoW)
EUR/USD: 1.09 (↑1.2%)
USD/JPY: 146.82 (↓1.8%)
The U.S. dollar weakened moderately, supporting EM capital inflows and alternative asset pricing.
Upcoming Key Data Releases
Date | Event |
April 8 | NFIB Small Business Optimism |
April 10 | CPI / Core CPI |
April 11 | PPI / University of Michigan Sentiment |
IGA Capital Perspective
With yields trending downward and macro data cooling, borrowers and sponsors should begin preparing to re-enter markets before spreads tighten further. Our current pipeline includes:
Renewables,
Fixed Income Opportunities,
Strategic Mineral Projects,
Pre-IPO,
Real Estate.
For a tailored range-of-terms proposal, please reach out directly or visit: iga.capital/news-updates
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