Not exact matches
The institutions are not only using the
money to meet their own short - term financing needs, they are also
borrowing additional
money to purchase the bonds of troubled countries and earn the spread between the
yields on those bonds and the much lower rate the ECB is charging them for
money.
Some of the best indicators for mortgage rate movement include the
yield on 10 - year Treasury bonds from the government and the LIBOR — a rate that determines how much banks must pay to
borrow money from each other.
Some of the best indicators for mortgage rate movement include the
yield on 10 - year Treasury bonds from the government and the LIBOR — a rate that determines how much banks must pay to
borrow money from each other.
These companies essentially profit by
borrowing money at extremely low rates (0.25 - 0.5 %), buying these mortgage securities that
yield 4 - 7 %, and the companies profit
on the difference.
He says he went back to fundamentals and now focuses
on trusts that can pay their distributions out of net income; he avoids trusts that have to
borrow money or sell more units to pay existing unitholders the
yield they expect.
But let me say that you are never too young to pay cash, although you might find you can
borrow money more cheaply than the immediate
yield on the cash.
If you can
borrow at 4 percent and turn around and make an investment in the stock market and
yield 8 percent, you made 4 percent
on your
money,» he says.