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This is true but until then they are paying 4-5% on money that they are earning 2-3% on so it’s at the very least working against current profits
by userinanother 3y ago
This is true but until then they are paying 4-5% on money that they are earning 2-3% on so it’s at the very least working against current profits
- RandomLensman 3y agoI haven't looked at how those positions are funded or hedged. While negative carry is possible, they could haved swapped the coupons back to float when they established the positions or have some more congruent term funding for some - I don't know.