Posted on 12/27/2022 8:59:57 AM PST by tired&retired
The US Debt is very interest rate sensitive. While the average outstanding maturity of the US Debt is 5 to 6 years, this data reveals much more.
Two Year Interval Debt (as of 2021)
Treasury Debt. $22.584 trillion
Mortgage Backed Securities. $12.202 trillion
These are Fannie Mae, Ginnie Mac, ...
WHAT HAPPENS WHEN THE AGENCY DEBT COST (OFF THE BOOKS DEBT) EXCEEDS THE 30 YEAR MORTGAGES AT 3% AND 4% ?
We could easily default on all the agency debt as the short term interest rate we must pay is many times the fixed rate long term mortgages receivable rate. This debt is not included in our US Debt as it is considered "Agency Debt."
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Thank You.. Good advice.
🙏🙏🙏
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