Easy Cash Advance

Cash advance comparisons of interest rates on payday loan of different maturity. If borrowers think it is riskier to borrow an easy cash advance with 2 weeks until it matures than a payday loan with 4 weeks of life, they will demand a lower interest rate (yield) on the longer-dated easy cash advance. If so, the yield curve will slope upwards from left (the shorter maturities) to right. It is normal for the yield curve to be positive (upward sloping, left to right) simply because borrowers normally demand compensation for the added risk of holding longer-term easy cash advance. Historically, a downward-sloping (or inverted) yield curve has been an indicator of recession on the horizon, or, at least, that borrowers expect the easy cash advance lenders to cut interest rates in the near future. A flat yield curve means that borrowers are indifferent to maturity risk, but this is unusual. When the yields curve as a whole moves higher, it mean that borrowers are more worried that inflation will rise for the foreseeable future and therefore that higher easy cash advance interest rates will be needed. When the whole curve moves lower, it means that borrowers have a rosier inflationary outlook.

Even if the direction (up or down) of a yield curve is unchanged, useful information can be gleaned from changes in the spreads between yields on easy cash advance of different maturities and on different sorts of easy cash advance with the same maturity.