For a typical business reader, these are pretty standard terms. Most people became familiar with MBS (mortgage-backed securities) during the last financial crisis, and CPI (consumer price index) is a way of reporting inflation.
The article is saying that if inflation is at 8.6%, no one would want to lend money for a lower rate. The real return (which takes into account the purchasing power of the dollars lent) would be negative.
The author gives evidence that there was a “no-bid” to buy debt at 5.5%. Buying debt is in effect another way of lending. Therefore, the author shows that no one wanted to lend at 5.5%, but were willing to lend at 6%. He concludes that this shows mortgage interest rates will go even higher.
That’s not to say that anyone is born knowing these terms, just that they are not particularly exotic among all the acronyms floating around.
The article is saying that if inflation is at 8.6%, no one would want to lend money for a lower rate. The real return (which takes into account the purchasing power of the dollars lent) would be negative.
The author gives evidence that there was a “no-bid” to buy debt at 5.5%. Buying debt is in effect another way of lending. Therefore, the author shows that no one wanted to lend at 5.5%, but were willing to lend at 6%. He concludes that this shows mortgage interest rates will go even higher.
That’s not to say that anyone is born knowing these terms, just that they are not particularly exotic among all the acronyms floating around.