Rates moved. Our rate didn’t
Cash is still paying, but less than it looks. The best CDs top out near 4.60% and high-yield savings sits around 4.10–4.50%, while inflation ran 3.4% year over year in July. The real return on a parked dollar is about 1.2% – before taxes.
The Fed held rates at 3.50%–3.75% in July on a divided 9–3 vote and meets again on September 16. Which way it moves is an open question.
Trophy Point Capital’s structure doesn’t require an answer to that question. We target up to 8% annualized, paid quarterly, from short-term loans secured by real estate. Fixed rate, asset-backed, with more than $8 million of partner capital ahead of investor capital.
The spread between cash and collateral widens every month as inflation stays above target.
