The Occasional Speculator

The Occasional Speculator

UP INTEREST RATES - PLUS JAPANESE INFLATION

BUY SOFR PUTS

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The Occasional Speculator
Mar 03, 2025
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INTEREST RATES RISING: BUY SOFR PUTS

Interest rates are stable currently at 4 ½% pretty much across the board (i.e. the yield curve is flat with the Fed Funds rate). The biggest interest rate market, the SOFR, expects interest rates in December to go DOWN to 3.7% (this is based on SOFR Dec trading @ 96.31 which equals 3.7% interest rate). Why then do we …

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