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Reply to "Not gloom and doom, but Mortgage rates have risen since Trump's election"

caribny posted:

Baseman you don't know anything on this topic, so quit while you are ahead. When interest rates rise those who already own bonds, especially those with a long term duration,  LOSE.   Now figure out why this is so!

Listen banna, on the secondary market, prices move to reflect the yield vs face value!!  The coupon rate remains fixed so the value of the bond has to move to reflect reality of the market rate!

In the end, those pension funds and fixed rate earners shitting in their pants to meet current obligations!  This is why they rotate to riskier dividends-yielding instruments!

FM
Last edited by Former Member
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