The Capital Issue

February-March 2014

After what appears to be a precarious start to the new year in terms of the stock market and 10-year Treasury, the capital markets have rebounded at the time of publication. In this edition of The Capital Issue, we explore some of the themes highlighted by the situation.


The S&P 500® Index, which is widely regarded as the bellwether of the U.S. economy, began the year at 1831.98, but dipped to 1741.89 by Feb. 3. With five years of unprecented growth, market observers began to question whether or not the U.S. equity markets were in a bubble. Although the index recovered nearly 97 points, fears still remain about a major market correction. The Fiduciary Focus looks at the indicators and discusses the possibility of an equity bubble.

The 10-year Treasury dropped 40 basis points from the start of the year to a low of 2.581% on Feb. 3; however, by Feb. 14, it was up to 2.746%, which is not quite as high as it was two months previously. Because rates are still comparatively low, we’re featuring separate articles on two debt financing products known for ease of use and speed to closing—note modifications and bridge loans.

Finally, we have current interest articles for hospitals and housing, which will inform readers on sector hot topics. 

Please let us know if you have any questions by reaching out to the authors as well as to our bankers for answers. To find the one closest to you, visit www.lancasterpollard.com.

Tom Green, CEO


FHA-Insured Loans: Reduce Rates Through Note Modification
2/19/2014

FHA-Insured Loans: Reduce Rates Through Note Modification

When the nonprofit owners of a senior living facility in Nebraska looked to refinance their current loan insured by the U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA), they considered a little known program that has not been widely used in the past—note modification. 

Tax-Exempt Status: From Charitable Care to Community Benefit
2/18/2014

Tax-Exempt Status: From Charitable Care to Community Benefit

Nonprofit hospitals are in a new era of compliance, with reporting obligations now inextricably tied to an organization’s tax-exempt status. Two recent notices from the IRS attempt to provide more clarity for hospital leadership. 

Versatile Interim Financing to Bridge the Gap
2/17/2014

Versatile Interim Financing to Bridge the Gap

In today’s active senior living business environment, a bridge loan can be a necessary interim step in advance of securing more permanent, long-term financing, which is why they are gaining in popularity.  When time is of the essence for providers to obtain financing, these short-term loans are often the answer.

Affordable Outlook: What’s in Store for 2014?
Are the U.S. Equity Markets in a Bubble?
2/15/2014

Are the U.S. Equity Markets in a Bubble?

Since the depths of the “Great Recession” in early 2009, the U.S. equity markets have been on a tear. There have been five consecutive years of gains.

The Capital Issue: February - March 2014

Feature
Hospitals
Senior Living
Housing
The Fiduciary Focus

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