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Value After Hours S05 E16: Cam Harvey on 10-3 Inversions, Recession Risk, False Signals and the Fed

The Acquirers Podcast

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The Importance of Inverting the Yield Curve

Short-term rates are lower than long-term rates almost all the time. So, as that short rate's going up, you are paying more to your depositors. And given that you're locked into longer-term investments, like these loans, the companies, and the bonds that you bought, that's not moving. Your business model is being upended. When you invert the yield curve, you stress that model. It could come to the point where it causes big problems.

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