Knowledge Base
Rate trends, historical context, monetary policy, and the fixed-income landscape that affects everything from mortgage decisions to bond allocation.
23 articles in this category — page 2 of 2
Argentina savings account interest rates on peso-denominated deposits reached triple digits in 2023 and have remained elevated through 2024, with the Banco Central de la República Argentina (BCRA) benchmark rate driving regulated minimums on time deposits. The headline number looks extraordinary. Th
Maximum interest rates by state matter far more in private lending contexts than in institutional ones. If you're structuring a family loan, seller-financing real estate, or acting as a hard money lender, state usury law is the governing framework. If you're borrowing from a national bank, federal p
The monthly interest rate formula converts an annual rate into its per-period equivalent, either by simple division (annual rate / 12) or the compound-accurate version: (1 + r)^(1/12) - 1. Which one you use matters. On a $5 million fixed-income allocation, choosing the wrong conversion method can mi
An interest rate floor is a contractual provision that sets a minimum interest rate on a floating-rate loan or derivative instrument. When the benchmark rate falls below the floor, the borrower pays the floor rate rather than the lower market rate. The lender's income stays protected. The borrower a
Yield to maturity and interest rates are related but measure different things. The interest rate (or coupon rate) is fixed at issuance and tells you what the bond pays. YTM is a forward-looking calculation that tells you what you will actually earn, accounting for the current market price, all remai
Historical multifamily interest rates have swung from 21.5% at their 1980 peak to below 3.5% during the post-pandemic stimulus era. That 18-percentage-point range isn't just trivia. It defines the entire acquisition economics of the asset class, determining who can buy, at what price, and with what
An interest rate cap is a derivative contract that limits the rate a borrower pays on floating-rate debt. If the reference rate exceeds the strike rate on a reset date, the cap seller pays the difference. Simple in principle. The complexity, and the real decision-making, lives in the pricing, the ta
A 5 year interest rate swap is a bilateral contract in which one party pays a fixed rate and receives a floating rate, while the counterparty does the opposite, on a specified notional amount for five years. No principal changes hands. Only the net difference between the fixed and floating payments
Interest rate investing at the $5M+ level is a different discipline than what your financial advisor's newsletter describes. The stakes are concrete: a $2M bond allocation with 7-year duration loses approximately $140,000 in mark-to-market value for every 1% rise in rates. That's not a rounding erro
Cayman Islands savings account interest rates for USD-denominated accounts currently range from roughly 2% to 4.5% APY, with premium rates above 4% reserved for private banking relationships requiring $1M+ minimum deposits. Before you move capital offshore chasing that spread, the compliance math ma
Interest rate swap tax treatment sits at the intersection of two areas where generic advice fails completely: derivative taxation and high-net-worth planning. The IRS taxes most swaps as ordinary income, not capital gains, but the character of termination payments, the timing of nonperiodic receipts