RRM financing features fixed real payments and fixed real returns that remove risk from the financing process and create value for both borrowers and lenders. RRM uses a patented process for creating and servicing an equivalent nominal-dollar instrument. The explicit specification of an equivalent nominal-dollar instrument provides financial professionals the nominal-dollar interest rates, interest amounts, payment amounts, and principal balance amounts they need to create

Stupidly Simple. A common lower ground for global capital fixed income formation. You can fix either the nominal interest rate or the real interest rate, but not both. īNominal = ĩBusiness Risk + ĩExpected Inflation + ĩInflation Risk Premium + ĩRisk-Free Real So, in fixing the nominal rate (on the left-hand-side) the risk-free real return is used to fix the nominal rate, but the realized real return becomes a variable that changes as the realized inflation rate changes: ĩReal