@TermMax #TermMax

Everyone asks, “what rate can I lock on TermMax?”

But I started thinking about what comes after the trade:

what happens when I want out?

A fixed rate solves the entry problem.
It doesn’t automatically solve the exit.

Before maturity, the position’s value can change with secondary-market depth, time to maturity, demand, and market rates.

So 6% vs 4% isn’t the whole trade.

The more interesting question is:

what happens to that fixed-rate position when you need liquidity?

The rate may be fixed.
The exit isn’t.