Aug
23
2009
High Yield vs. Investment Grade Bond Spreads Not Improving with Equities
Posted by: in Mortgage Loan News, tags: Bad Idea, Citi, Economy, Excerpt, Finance, Fixed Mortgages, High Yield, Hinges, Interest Rates, Investment Grade, Libor, Loan Officer, Metrics, Miscues, News Sources, Risk Management, Romeo, Term Interest, Whic, Yield Curve
News Sources wrote an interesting post today on
Here’s a quick excerpt
Romeo Fayette submits: One of the problems with all the intervention to keep interest rates low is the miscues that result in risk management. I know a Loan Officer at Citi ( C ) who says they’re not offering 30-yr fixed mortgages anymore; not a bad idea considering how much has been thrown at pinning Short Term interest rates. Hiding in the safety of ARMs, Citi’s clearly hedging its exposure to the yield curve. So much of finance and the broader economy hinges from metrics like LIBOR, whic
Here’s a quick excerpt
Romeo Fayette submits: One of the problems with all the intervention to keep interest rates low is the miscues that result in risk management. I know a Loan Officer at Citi ( C ) who says they’re not offering 30-yr fixed mortgages anymore; not a bad idea considering how much has been thrown at pinning Short Term interest rates. Hiding in the safety of ARMs, Citi’s clearly hedging its exposure to the yield curve. So much of finance and the broader economy hinges from metrics like LIBOR, whic
Read the rest of this great post here





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