SoFi's student loan growth is soaring, rising from $11.1 billion to $12.9 billion, but the escalating borrowing costs due to central bank tightening pose significant risks. As demand for loans falters with higher rates, investors are advised to trim positions and hedge against increasing interest-rate exposure amidst volatile market conditions influenced by geopolitical uncertainties and rising mortgage rates.
“Mortgage rates in the US rose for a fifth straight week, dampening hopes for the key spring homebuying season.”
“amid improved market conditions there for overseas borrowers.”
“Traders added to wagers that UK interest rates will rise this year.”
“Uncertainty over how the Iran war will affect the global economy is stirring volatility in interest-rate swap markets.”
“Traders are positioning for the Swiss National Bank to lean against franc strength.”
“Caution is needed for now, the Lithuanian central-bank chief said Thursday.”
“ECB Executive Board member Piero Cipollone sees “good momentum” for a digital euro, with a possible launch in July 2029.”
“Bank of England plans to make the UK bond market more resilient in times of stress.”
“Chile’s central bank said on Wednesday that several board members put forward the idea of a quarter-point interest rate hike at their last policy decision.”
“US mortgage rates climbed for a fourth straight week, rising to the highest since August.”
“The 10-year yield rose nine basis points to 7.04% on Monday.”
“The resulting uptick in yields comes at a time when borrowing costs are already squeezing the mortgage market.”
