H
ere is the rewritten text, condensed by 20%:

    In this article, we explore how the Federal Reserve's interest rate environment affects commercial real estate (CRE). Harbor Group International President Richard Litton joins us to discuss the impact of rates on CRE, the US bond market, and President Trump's plans to take Freddie Mac and Fannie Mae public.

    00:00 Speaker A The Federal Reserve won't cut interest rates until September, but what does this mean for rate-sensitive industries like real estate? Our guest says private capital is filling the gap left by banks. Joining us now is Richard Lin, Harbor Group International's president with $19 billion in assets under management.

    00:34 Richard Lin Private lenders are supporting the industry, focusing on product types with strong fundamentals like multifamily. This sector benefits from Freddie Mac and Fannie Mae, which provide debt liquidity to the apartment market.

    01:26 Speaker A You mentioned Fannie Mae and Freddie Mac going public. What's your take?

    01:35 Richard Lin The government guarantee behind these financing sources is crucial for the housing market, particularly in the single-family market. Pulling back this implicit guarantee would elevate rates, which could be detrimental to home buyers.

    02:44 Speaker A You also discussed private lending and its lack of transparency. Is that something consumers should be concerned about?

    03:08 Richard Lin In our business, we lend to sophisticated counterparties who are also sophisticated investors. While there may be some opacity in the process, it's a transparent market for us.

    04:11 Speaker B Has private credit had its real-world test yet? If so, how do you think it fares, and where do you see risks within that sector?

    05:00 Richard Lin We're still in a testing period due to the elevated rate environment. Lenders have faced challenges with floating-rate loans made during low-interest periods, which are now maturing at higher rates.

    06:17 Speaker A How are you thinking about the bond market's impact on your business?

    06:41 Richard Lin In our credit business, we see good income generation opportunities in private real estate credit. We focus on strong underlying fundamentals and risk assessment to formulate returns. Institutional investors are supporting US private credit, particularly multifamily, due to its strong property-level fundamentals.

    07:50 Speaker A Thank you so much for joining us, Richard.