The Insight: Conversations – Full Return World with Howard Marks and Armen Panossian
The Memo by Howard Marks
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Why Higher Interest Rates Should Be Tied Up for Longer
In 1980, my stepmother proudly told me she acquired a CD with a 16% interest rate for one year. I suggested she should have taken a 10-year option, even though she believed the return of 11% was lower. My point is that higher rates should motivate lenders and investors to commit their funds for longer periods. To avoid making a mistake, we should seize the opportunity presented by today's rates.
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