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John Moffat.
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acca9
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“Borrowers hedging against an interest rate increase will buy interest rate futures now and sell them at a future date”
Why is this incorrect?
John Moffat
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You need to watch my free lectures on interest rate futures where this is fully explained.
As interest rates increase, futures prices will fall. So to make a gain when interest rates increase you sell futures now and buy back at a later date.
acca9
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I see. That’s clear now.
ThanksJohn Moffat
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You are welcome 🙂
John MoffatViewing 4 posts - 1 through 4 (of 4 total)
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