SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: dybdahl who wrote (16017)1/4/2009 9:51:47 AM
From: Real Man  Read Replies (1) | Respond to of 71403
 
Let's take interest rates swaps. The seller of the contract
agrees to pay current libor against a fixed inflow of 5% in
mortgage payment. What do you think will happen to those sellers
if the dollar tanks and foreign T-holders walk away? Libor
will sky, their 5% cash inflow will remain the same. For
30 years even 25 bp. makes a large chunk of the notional.
Why is the Fed so concerned?


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News