Base Cost Floors were introduced to protect investors in the event of interest rates turning negative. Robust market conditions and higher short-term lending rates have meant that Borrowers have been able to negotiate reduced base cost floors in recent years. Further rises in interest rates may have more significant impacts on base cost floors.
As part of our ongoing product development, we are pleased to announce that Base Cost Floors are now monitored with our Representative Loan Terms (RLT) database. If you are a subscriber to RLT you can log in here to view the data. If you would like to read more of our research on Base Cost Floors, please click here.