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Strategies & Market Trends : World Outlook

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To: Don Green who wrote (1956)4/25/2003 4:58:35 PM
From: mishedlo   of 49494
 
When you take out a fixed-rate mortgage for $400,000, you're taking the equivalent of a $400,000 short position in bonds. Do you want to short the bond market? This risky bet would lose money if interest rates fell, but pay off if rates went sky-high.

Bad analysis.
You can refi
It is the seller of that last refi that has a problem

M
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