Ouch ! my interest repayments

Let’s put the yield curve aside,

it’s a fact the current move in the U.S. 2 year note resembles a parabola,

it’s a fact that many rate hikes are being factored in,

after all the U.S. 2’s have risen 12 fold (from 0.2% to 2.4%) since October 2021,

in fact, bond buyers since then have suffered notable losses

(what were they thinking buying 2 year debt for a 0.2% return?)

but the larger fact is that new financing costs are higher

and that means interest servicing for existing debt has materially changed.

#financingmix

April 1, 2022

by Rob Zdravevski

rob@karriasset.com.au