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Torabisu

I’m a huge fan of Joel Spolsky. If you are thinking about starting a software company, or work in a software company his perspective is worth at least a semester or two at business school.

Joel just wrote an article where he hammers Wall Street for offering bonds with prepayment options to retail investors. While I agree that brokers are probably obfuscating the interest rate risk… I suspect he is a bit too harsh by implying that these bonds can never be a good deal. Seems to me they’re a great way to allow the market to assign a value to interest rate risk (as long as they’re sold honestly).