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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (48838)	4/21/2004 12:42:55 AM
From: mishedlo	Read Replies (1) \| Respond to of 74559

How would that work? Here's how: FMN suffered massive losses last summer because they were hedged for higher interest rates. Just last month same thing. They had to buy a zillion treasuries to protect against another round of refis at lower rates. Then low and behold, they got massively whipsawed again. If the next jobs report is a cruumy one and down we go again they will be wipsawed yet once again. That is why Greenspan encouraged variable rate loans IMO. To prevent the FNM whipsaw. ng Mish