Both foreign and domestic buyers are demanding higher interest rates to compensate them for what they view as added risk—so new debt is more expensive than the older retiring debt.
It is like when broke people try to get car loans—they have to pay much higher interest rates than folks in decent financial shape.
They can get the loan—but the costs are just very high.
Yes that is true - cant argue that.
I wonder, does the US govt reserve the right to pay off these loans early?
If tats the case, its should refinance these loans when interest rates are low.
Actually the subprime car loan market has puckered really well. They are very very picky now.