Something Strange
Happened on the Way...
...A common question arising
this year is ‘why are loan fair values
still showing a premium given the rising
interest rate environment we experienced
last year?’ Over the last six months
of 2004 the Fed raised the target fed
funds rate 125bp. This tightening by the
Fed has had the obvious impact on Prime
and short-term yield curve rates and
created the impression that we are in a
rising rate environment. ....[more]
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