Overnight Sora is quite volatile, and most loans are priced off 3-month compounded Sora whose downtrend is quite pronounced. The 3-month compounded Sora index was at 1.531% on Sept 4, down from 3.0346% on Jan 2.
For the month of August, JP Morgan recounts that developers and S-REITs had a good month returning 4.3% and 3.8% (including distributions) respectively in anticipation of US Federal Reserve rate cuts in September.
Both outperformed the Straits Times Index (+3.7%) but lagged the MSCI Singapore Index (+5.8%) during August. JP Morgan attributes the performance to the continued decline in local interest rates.
