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Old 13.09.2011, 17:45
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Re: Does high inflation (as a result of SNB) mean a hike in interest rates.

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they way i see it:

10 years fix. great rates - in fact, we may never get such good rates again. you fix, leave it, can sleep well at night and know you got a good rate (albeit not the best possible rate).

however, LIBOR is still 3x cheaper than the 10 year fixed right now.

i was going to go with 50% libor and 50% 10 year fix. but then my job started to look a bit uncertain, so to stay on the safe side, i went with 1/3 LIBOR 2/3 10 year fix.

but i made sure the LIBOR component was fully flexible so that if IRs did shoot up, i could simply just repay the LIBOR component and so i still have a way out if IRs spike up unexpectedly.
Thanks Phil, I'll definitely consider that.
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Old 15.09.2011, 12:22
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Re: Does high inflation (as a result of SNB) mean a hike in interest rates.

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Thanks Phil, I'll definitely consider that.
no probs. i'd be tempted by the 10 year fix too. very simple. you know what you're paying for and you have no worries. ok, you might be able to get it cheaper with some LIBOR component, but you take on risk for that.
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  #23  
Old 15.09.2011, 13:06
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Re: Does high inflation (as a result of SNB) mean a hike in interest rates.

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no probs. i'd be tempted by the 10 year fix too. very simple. you know what you're paying for and you have no worries. ok, you might be able to get it cheaper with some LIBOR component, but you take on risk for that.
Signed this morning, that's what I did:

50% 10-years fixed
50% 3-months LIBOR

As soon as I feel the wind is changing, I will move the LIBOR to a 10-years fixed, hoping not to regret it...
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Old 15.09.2011, 13:25
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Re: Does high inflation (as a result of SNB) mean a hike in interest rates.

probably a little late, but they aren't going to raise interest rates when they've put a floor on the currency. It would encourage carry trade again.
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