In the OP’s initial instance the borrowed funds was amortizing and your very own instance may mortgage try IO. The “amortization is negligible” feedback is definitely inaccurate, it can make a giant contrast on ROE.

In the OP’s initial instance the borrowed funds was amortizing and your very own instance may mortgage try IO. The “amortization is negligible” feedback is definitely inaccurate, it can make a giant contrast on ROE. The OP experienced negative arb of the debts YOC vs. price of financial obligation (4.75per cent versus 5.77%). In the... » read more