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"It's not resetting to the late '90s like stocks, but it's resetting".
His ARM had a 5.5percentt initial rate that was soon resetting to 7.25percentt.
Not all auction-rate securities with failed auctions are resetting to very high rates.
Many private student loans, just like home mortgages, carry adjustable rates and are resetting to higher levels.
But he noted all the efforts would likely only have a limited impact, given the number of loans resetting to higher interest rates in the coming months.
But the failed auctions do have one upside: the securities are resetting to rates that are far higher than those on other types of bonds.
Similar(18)
But a reset to what?
"I went to take the reset to the next stage.
Maybe it had reset to a higher rate.
We just needed a reset, to do things differently.
Reset to zero…" On Twitter, the reaction was largely enthusiastic.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com