Tag: Vice Versa Rule

The JFF Blog Q’nD Generic Answer Series re: Hanging on to Asset’y Liabilities

Here’s the setting: Fictional Terry is nearing retirement.  Fictional Terry has a mortgage and is wondering whether, given the lousy returns in the bond market these days, it makes sense for Fictional Terry to reduce Fictional Terry’s cash and/or sell some of Fictional Terry’s bond holdings to pay off Fictional […]

Of basis points, beeps and bips: the atoms of interest rates

Today I have something short and purely educational for you. Interest rates are in the news today. Greenspan et al. are meeting, and there is unanimous agreement among the punditocracy that he will raise short term interest rates (the only interest rates over which he has much power) by 0.25%. […]