Laserfiche WebLink
It Could be Worse — An Historic Example <br /> • Son of French bank marries daughter of CSA envoy to <br /> France and England <br /> • French bank loans$15 million on the following terms: <br /> — Interest rate of 7% <br /> — OID of 23%(CSA gets$11,550,000 but must repay$15,000,000) <br /> — French bank gets right to future purchase of Cotton at 1/2 market <br /> price <br /> — French bank sells bonds to public at 01 of 10%, making instant <br /> 13%profit <br /> Sw—The Civil War.A Nanaiive,Vol.2,pp 155157,by Shelby Foote <br /> Public Sector Advisors Springsted <br /> i <br /> Federal Reserve Actions <br /> • Market projection of Federal Reserve Action <br /> — Market projects no change in rates at next 2 FOMC meetings <br /> • Future Rate Direction <br /> — Will depend on economic conditions—take`lag"time into account <br /> • General consensus is that FOMC will increase rates <br /> • Effect on Dollar Valuation <br /> — Continued rate reductions may weaken dollar value(which has <br /> improved in recent weeks) <br /> • Leading or Following? <br /> — Fed strives to avoid perception it is reacting to rather than <br /> anticipating market conditions <br /> Public Sector Advisors Springsted <br />