A recent article published in Barron’s about falling interest rates spotlighted EGC client Mercedes-Benz Financial Services for its First Class Demand Notes as an alternative investors should consider. By the end of 2024, short-term rates will be lower than they have been in years. The Barron’s article is a wake-up call to investors, alerting them to the fact that 5-percent yields will be significantly less within a few months. One of the alternatives listed is the “demand note,” which is a loan with no fixed loan term or repayment schedule. The Mercedes-Benz version of this is its First Class Demand Note. “We’re lending money to consumers and dealers on a daily basis. This is another way to diversify our funding sources.” — Chad Bowles, Manager of Mercedes-Benz Program Learn more about First Class Demand Notes from Mercedes-Benz Financial Services.
