The Malabar strategy for Aptus resembles a niche industry segment, buoyed by long-term secular growth and favorable tailwinds, with a nuanced consideration of interest rate impacts.
Within the affordable housing segment, there exists a notably limited penetration, offering a substantial runway for growth. Aptus stands out as a prominent player in this arena, benefiting from enduring tailwinds.
While interest rate tightening may have some impact on the housing finance segment, its effects are primarily limited to new flows and incremental borrowing. Effective management of assets and liabilities can mitigate these effects considerably. Although there is an undeniable impact, it remains relatively modest.
Moreover, there are additional levers at play, including operational expenditure management and asset quality control. Within the affordable housing sector, companies like Aptus possess sufficient resilience to navigate and absorb minimal interest rate hikes more adeptly than larger players with shorter asset durations.
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