cost of capital

Two facilities quoted 75 basis points apart. Once field exams, appraisals, collateral monitoring and the finance team's own hours are counted, the cheaper-looking one costs 82 basis points more to run. The gap reverses entirely.

June core PCE held at 3.3 percent, still above the Fed's 2 percent target, while the policy rate stayed at 3.50 to 3.75 percent. Why a capital plan priced to a 2 percent world mismatches the cost of capital lenders are quoting today.

Manufacturing capex intentions are at multi-year highs, but conventional bank underwriting is thinning. The bottleneck has shifted from the investment decision to how it gets funded.

The cheapest quoted rate is rarely the lowest cost of capital. With Q1 2026 spreads ranging 25 to 200 bp, structure, not headline spread, decides what a facility actually costs.