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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