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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (16069)	11/18/2004 4:33:26 AM
From: zonder	Read Replies (6) \| Respond to of 116555

I doubt that. Flattening of the interest curve is quite expected in initial periods of interest rate hikes, so I suspect they would have anticipated it and positioned themselves accordingly. I would imagine they could be short the short end and long the long end of the yield curve. Thus positioned for flattening of yield curve, they would make money on increasing Fed rates and would be vulnerable to any abrupt change in Fed policy (ex: stop rate hikes & actually lower them).