Sept. 18, 2006


  • As the real estate market begins to cool, it will be interesting to see how it affects the borrowing rates -- and whether there are other serious consequences that we'll all have to brace for.
  • The anonymity of this writer intrigues me.
  • While it is tempting to extend the duration of the liabilities during a flat yield curve environment, I believe this strategy will backfire as the Fed has ended its rate tightening cycle and the probability of the Fed's reversal increases daily as we are seeing inflation diminish and slower growth. In fact, it is the duration of ASSETS that should be extended.