Holders of prepayable loans don’t really benefit much when rates drop, so I’ll assume you mean bond-like instruments (or ones that aren’t likely to be refinanced out of, or that pay some bonus in that event).
I meant that borrowers throughout the economy can refinance at lower rates, which is better for them, which means it’s easier for the economy to build new stuff.
Holders of prepayable loans don’t really benefit much when rates drop, so I’ll assume you mean bond-like instruments (or ones that aren’t likely to be refinanced out of, or that pay some bonus in that event).
I meant that borrowers throughout the economy can refinance at lower rates, which is better for them, which means it’s easier for the economy to build new stuff.