Your English writing platform
Discover LudwigSuggestions(1)
Exact(2)
Borrowers that prefer the predictability of fixed-rate debt have to take on a swap.
Such bond packages had become popular in the last few years because they appeared to offer cities both the lower borrowing costs of variable-rate bonds and the predictability of fixed-rate bonds.
Similar(58)
Commonwealth Financing Authority, Pa., $187.5 million of fixed-rate (federally taxable) revenue bonds.
Swap rates are the rates banks pay to borrow from each other, and determine the pricing of fixed-rate mortgages and fixed-rate savings bonds.
Speculation waned that the Federal Reserve will cut interest rates, dimming the appeal of fixed-rate securities.
Last year, governments across the country issued about $23 billion of fixed-rate municipal bonds in September.
If interest rates go up, the value of fixed-rate bonds (and loans) falls and vice versa.
As a result, Canada has neither the responsiveness of a completely free floating exchange rate nor the predictability of a fixed rate set by a currency board.
With the abandonment of fixed rates, this risk was privatised.
On top of all this, in the 2000's the mortgage industry increasingly structured loans with variable rates instead of fixed rates, and with low "teaser rates".
One of the chief benefits of the fixed-rate loan is its predictability.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com