RE: RE: RE: RE: RE: Speculating on Q3Yeah I noticed that...even though a 1% drop in interest rate will cause $1.2B loss.
It will not happen, because after applying the AFS Bonds' strategy it will be more like $600M.
Overall, how low can interest rate go?
Its already written down to about 3%
If it goes to 2% MFC will have to write off $600M
It it goes to 1% MFC will have to write off $$1,200M
In between, the writing on and writing off ever Quarters are crazy.
When ever it goes to 5%... what a windfall for MFC that will be !
This is only how I understand it.