mutual savings and loan association

An Issue of Leverage Not Yet Seen as an Issue

By David von Leib

I shared a car service home today with a first-loss fund of funds manager who bragged that he can go to Goldman Sachs and get 20-1 leverage on a 50% net long vs 50% net short portfolio.  “Better yet, BNP will offer 50-1 leverage on a portfolio margining basis, maybe even 100-1 if the portfolio is particularly well diversified.”

I had just come from a conference exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

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