Wait, it's very easy to borrow at short term rates (3M LIBOR) and then receive fixed long term rates (30 Years). It's called an interest rate swap. http://en.

Wait, it's very easy to borrow at short term rates (3M LIBOR) and then receive fixed long term rates (30 Years). It's called an interest rate swap. http://en.wikipedia.org/wiki/Interest_rate_swap http://en.wikipedia.org/wiki/Interest_rate_swap And no, simply receiving on 30Y swaps is not a sure path to money. Sure you will probably pick up carry in the first year or so, but eventually you need to get out of the trade (or take on the risk for 30 years), and if LIBOR / Treasuries sell off you'll have to pay a hefty amount to unwind.