McCallum’s Musings on the Market – 1/27/2026

McCallum’s Musings on the Market!

• Current odds of a government shutdown by January 31, jumped from 11.5% to 79% on Kalshi and from 9% to 80% on Polymarket.
• Expect lenders to gauge higher-than-anticipated provisions for credit losses to prepare for the potential of soured loans.
• Dictionary – in·fla·tion (noun) – the action of inflating something or the condition of being inflated. Economics – a general increase in prices and fall in the purchasing value of money.
• Rate cuts don’t just squeeze bank margins; rate cuts debase the currency and inflate debt… collectively they signal the system needs more “support.” And “support” means more debt issuance, more intervention, more currency dilution.

McCallum’s Music Pick: Jerry Was a Race Car Driver by Primus

Case Study

• Sacramento, CA
• 10,120 SF
• Industrial property
• 10.00% fixed interest rate for 1 year
• 70% of purchase price

John McCallum, Borrower’s Advocate, completed this $588,000 purchase financing requirement for an industrial property in Sacramento. The buyer required expedited funding to accommodate the seller’s timing requirement. Known for representing owners and investors in obtaining the best financing solutions, John sourced and closed the loan within 3 weeks of the purchase agreement to provide the owners another opportunity to grow their industrial real estate portfolio.

Featured Article

BLACKROCK SUBSIDIARY MARKS SIGNIFICANT DECLINE FOR MIDDLE-MARKET INVESTMENTS: BlackRock TCP Capital Corp. (NASDAQ: TCPC), a publicly traded business development company (BDC), announced in a late Friday SEC filing that it expects a 19% decline in its net asset value per share for the fourth quarter ending December 31, 2025.