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by eloff 1761 days ago
Because my mom is going to do that when she wants to buy something. Crypto logic sometimes...
1 comments

Your mom doesn't matter. The topic is finance companies. I'm sure the "second largest US mortgage lender" has someone who understands this.
Your crypto logic doesn't matter. If the end good isn priced in dollars, why would the finance company price it in something else?

How many US mortgages are priced in gold or Yen? Even internally?

Fixed-income products are generally priced in yield, even though the actual agreements mention dollars. The futures for treasury bonds are literally denominated in yield points, but most (fixed-income) things it's more "people denominate in USD and think in yield".

That is, everyone trading bonds/certain commercial real estate/mortgages/preferred stocks/etc. converts them to a % return, with different yields falling in different risk categories. So you might get 3% on a relatively safe commercial bond, 10% lending to Turkistan, 4% on a property in the middle of a desirable city, 13% if it's filled with asbestos and shut down by the city.

It would be possible to price a mortgage in any continuous ratio between USD/Bitcoin, though I suspect the imputed interest rates for an already-low mortgage rate would make it undesirable. Someone would just have to punch current prices into a spreadsheet to see how it affects the yield.

I would expect Bitcoin specifically to have a high interest rate holding a long position(since Bitcoin people want high leverage), and the short position to have an implied positive yield. So banks should want to price in Bitcoin since they like leveraged low-risk low profit. But I haven't looked at a price chart for that assumption.