2.2% 25-yr loan

pms laflame at aaahawk.com
Thu Mar 28 06:27:00 PST 2002


Since it's a yen loan, that rate sounds about right. Actually, it's a bit higher than a car loan I saw at Fukui Bank. And any appreciation of the yen will make it harder to pay.

Charles Jannuzi

Thanks Charles. I realize that the rate's alright for Japan but since I don't have a firm grasp on currency effects I was just wondering why everyone wouldn't want to borrow at these rates and what effect would that have on the banking systems of various players. I know if I was financing something the 7-yr grace period on paying principal would sound a consumer alarm. I also remember that I've heard folks on the list mention that inflation is good for the debtor because they pay back in cheaper money. I guess deflation and yen appreciation are related?

ps. Moody's just upgraded S Korea's debt rating.



More information about the lbo-talk mailing list