How is that a rip-off? In the general case, this is how banks basically work. They borrow short term from depositors and lend long term to mortgagees and busi

How is that a rip-off? In the general case, this is how banks basically work. They borrow short term from depositors and lend long term to mortgagees and businesses. In this specific case, they are exposing themselves to risk from the time value of money, the capital price of the bond. If rates rose 0.5%, they lose 3% on a 7 year bond.