CAI - General Chat, page-802

while I agree with you the losses need to show up somewhere - every interest rate hedge will have a counterparty and there will be a cascade of counterparties as each one lays off the risk but in the end someone has the loss. The same thing happened in the GFC.

The cost of laying off the risk to someone else will have kept rising and rising as interest rates continued to rise and would have been very expensive to completely lay off the at them off in the last 6 months.