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If rates go up, they will not.
If rates go down, homeowners will refinance.
Not if rates do rise.
If rates go up, their performance suffers; if rates fall, they excel.
If rates are indeed switching direction, what should investors do?
That could be an unpleasant surprise if rates rise again.
That exposes them to "heavy losses" if rates rise suddenly.
But if rates rise fast, that may all fall apart.
Price increases are possible only if rates continue to fall.
"If rates double overnight, too bad -- you've got to pay it".
If rates rise in that period, the zero-coupon can plummet in value.
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