He told me that his team had just closed a large real estate transaction worth hundreds of millions of dollars, and they got a sweetheart deal from the bank.

The bank is loaning them almost all of the money at an interest rate of around 2%.

But it gets better.

If the Federal Reserve raises interest rates, he has the option of locking in the rate that he has now… so his interest rate will basically never go up.

But if the Federal Reserve lowers interest rates, the rate that he pays on the loan will go down.

In other words, he got an amazing deal from the bank… and it might even get better. But it will never get worse.

Now, this is obviously fantastic for the borrower.

But for the bank, this is an absolute sucker's bet. There's almost zero upside.