To use an example, lets say that F&F charge off 10% of their portfolio (which would be a big number). Further, let’s say the average yield on the remaining 90% of their book is 5.5% and their funding costs (now borrowing at govt rates) are 2.5%.
I think your estimate of borrowing costs for FRE/FNM are almost double what they currently are. Is some of that for long term borrowing that has not yet rolled over?
