This is also happening to small businesses, that used to pay 4% and now they're paying 9% or even 12%, which is obviously another problem if we're higher for longer." 3. "We have a massive problem we're staring down because of the low interest rates being in place for so many years, almost a decade, and now the Fed being higher-for-longer. Those will likely be reissued as yields are hovering close to 5%, Gundlach later added. That's partly because bonds that are paying next to nothing in yields are now approaching maturity. The interest expense on the debt is exploding in a vertical fashion, because all of those bonds that were issued back at 25 to 50 basis points … they're all rolling off, and they're rolling off with great speed." "The reason I'm worried about higher-for-longer is something that is already in evidence, but isn't getting enough attention, and that is our fiscal situation.
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