Stocks sold off sharply as rates moved higher, underscoring how fragile risk sentiment has become amid geopolitical and inflation uncertainty.Mortgage markets, however, are showing relative resilience.

Affinius Capital agreed to acquire the New Jersey and Boston apartment REIT at a 27.5% premium to its 30-day trading average — and shares still jumped over 12% on the news, underscoring how deeply discounted public REIT pricing had become relative to underlying asset values.It's a pattern with historical precedent: Blackstone's $26B acquisition of Equity Office Properties, its $13B buyout of BioMed Realty, and the $12.8B privatization of QTS Realty all followed the same logic — when listed REITs trade below intrinsic value, institutional capital moves in to capture the spread.Early in my career as an investment banking analyst at FBR Capital Markets, I had a front-row seat to the Bistricer family's entry into the public markets — we worked on their 144A, a pre-IPO step that preceded the eventual listing of Clipper Realty.

At the same time, inflation pressures remain stubborn, with both the Import Price Index and Export Price Index printing hotter than forecast—underscoring that global price pressures have yet to fully cool.Attention now shifts to the remainder of the week, with tomorrow’s January employment report setting the tone for risk markets and rates, followed by Core CPI on Friday, which will be the most critical input for near-term Fed expectations.

On rates, Bessent underscored the importance of market‑driven pricing of government debt and reiterated that Federal Reserve policy decisions ultimately rest with the Fed, even as the administration continues to voice its preferences publicly.

The data underscore that pricing power at the business level has not cooled meaningfully and continues to pose upside risk to the Fed’s preferred inflation gauges.

Governors Christopher Waller and Stephen Miran dissented, favoring an additional 25bp cut, underscoring that the committee remains divided on the appropriate degree of restraint.

GDP came in broadly in line with expectations, underscoring that the economy continues to expand, though at a more moderate pace.

CPI remains tame with +0.3% m/m, +2.7% y/y, and core +0.2% m/m, underscoring steady disinflation.Meanwhile, Retail Sales beat at +0.6%, and the GDP control group rose 0.4%, signaling solid Q4 consumption.

While transaction volume remained below peak-cycle levels, deal activity continued — driven by a mix of institutional capital targeting irreplaceable assets and private investors pursuing value in smaller, more financeable transactions.Several marquee deals underscored this resilience:-The $865M sale of the JW Marriott Phoenix Desert Ridge Resort-Hyatt’s $2.6B acquisition of Playa Hotels & Resorts and subsequent $2B portfolio sale-Blackstone’s acquisition of the Sunseeker Resort in Florida-Multiple high-profile portfolio and lifestyle hotel trades across major U.S. markets.

Lucie, FL emerged as surprisingly tightLubbock, TX recorded an average of 11 renters per available unit, more than double the prior yearThese dynamics underscore how localized supply constraints can quickly drive competition — even outside traditional gateway cities.9.