The payments go up because the debt it is based on goes up. It is not a particularly high return performance for holders of govt debt..
Regardless, the piece mentions leveraging. If investment returns (stock, bond, real estate, etc.) are greater than the added debt interest, profit is gained. I have a mortgage at 2 1/8% I took out shortly…
The payments go up because the debt it is based on goes up. It is not a particularly high return performance for holders of govt debt..
Regardless, the piece mentions leveraging. If investment returns (stock, bond, real estate, etc.) are greater than the added debt interest, profit is gained. I have a mortgage at 2 1/8% I took out shortly before my old mortgage was paid off. I could pay it off but I am making profit on it.
The payments go up because the debt it is based on goes up. It is not a particularly high return performance for holders of govt debt..
Regardless, the piece mentions leveraging. If investment returns (stock, bond, real estate, etc.) are greater than the added debt interest, profit is gained. I have a mortgage at 2 1/8% I took out shortly before my old mortgage was paid off. I could pay it off but I am making profit on it.