and i'm not necessarily looking for something all that cheap, i recognize the risk i'm trying to put off on someone, and for 225k in loans over the lifetime i'm already looking at paying somewhere around 250k in interest at these rates, if rates double it'd be more than double that.
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no more fixed rate student loan consolidation at chase
- Thread starter dumb_mother
- Start date
Well, that's fine as long as you realize that you're basically unhedged for the first 10 years. You just have to weigh the cost of the rolls against the risk of a 10s20s flattener.Quote from dumb_mother:
just did the 10 year swap 10 years forward because the loans are all 20 years and that would give me a long hedge without having to roll the position constantly, wanted to avoid the roll risk as if we truly enter a bond bear market they'll steal a couple percent from you each time you roll.
i initially thought i'd just short 3 ZB against it myself, but the amount i'd get skinned for each roll wasn't a risk i really wanted...
As I mentioned, doing it in treasuries also exposes you to asset swap risk.
The other possibility, and this is something quite a bit more finicky, is to do it all through Eurodollars. You can probably get a broker to do a 5Y bundle for you, but that's as far as that goes, unfort.
if he does it through futures, swaps, etc he will have to post and maintain collateral which could lead to a disaster.
Your buddy is the kind of guy who's advice bankrupted small towns in this last bubble.
The best hedge I can think of is fully offsetting the position via immediate divorce.
Your buddy is the kind of guy who's advice bankrupted small towns in this last bubble.
The best hedge I can think of is fully offsetting the position via immediate divorce.
actually didn't realize i wouldn't be hedged for the first 10 of that deal, scratch that plan, argh
med school- there is a reason why doctors deserve to make shit-tons of money and it involves them going to school until they are 30 and coming out with a shit-ton of debt to pay off-- i'm loving that this health care bill doesn't look like it has the support anymore, she should be able to make enough to pay her loans off as long as we don't socialize medicine
so does anyone know who i can trade swaps through?
so does anyone know who i can trade swaps through?
oh and we (I) currently have the cash to pay the loans off i was just hoping to get it fixed and benefit as interest rates sky-rocket due to our fiscal retardation, so margin req's shouldn't be an issue for anything
Forget swaps. You won't be able to trade swaps, unless you get an ISDA signed.Quote from dumb_mother:
med school- there is a reason why doctors deserve to make shit-tons of money and it involves them going to school until they are 30 and coming out with a shit-ton of debt to pay off-- i'm loving that this health care bill doesn't look like it has the support anymore, she should be able to make enough to pay her loans off as long as we don't socialize medicine
so does anyone know who i can trade swaps through?
First thing you need to confirm is whether your liabilities are, in fact, linked to LIBOR. If they are, your best bet, in my view, is use a mix of Eurodollars and USTs. You may be able to do the UST bit through an ETF or cash bonds to avoid rolling. You will have to roll the Eurodollars, though, but that's a small price to pay.
Quote from dumb_mother:
med school- there is a reason why doctors deserve to make shit-tons of money and it involves them going to school until they are 30 and coming out with a shit-ton of debt to pay off-- i'm loving that this health care bill doesn't look like it has the support anymore, she should be able to make enough to pay her loans off as long as we don't socialize medicine
http://nhsc.hrsa.gov/loanrepayment/
Quote from dumb_mother:
med school- there is a reason why doctors deserve to make shit-tons of money and it involves them going to school until they are 30 and coming out with a shit-ton of debt to pay off-- i'm loving that this health care bill doesn't look like it has the support anymore, she should be able to make enough to pay her loans off as long as we don't socialize medicine
so does anyone know who i can trade swaps through?
Why doesnt she get an advance from the drug companies for the monies they will be paying her to prescribe medications that do not work, or better yet, make the patient sicker? http://www.ahrp.org/cms/content/view/299/29/
Or maybe she could get a job as the next Michael Jackson's DR and get paid $300k to lay by the pool all day and inject Michael Jackson with heroin every 30 minutes or so?
Sorry dude....the average DR in my area gets paid $256k a year to take money from sick people....tough for me to have much sympathy here.