How can a hedge fund levered 4/1 make money in sub-prime loans. Wouldn’t the interest expense negate spread?

September 7th, 2009 | by admin |
aliveandkicking asked:


I don’t understand how a hedge fund can leverage into a position in low yielding asset and make any money. Where are they getting ultra cheap money?

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    1. No Responses to “How can a hedge fund levered 4/1 make money in sub-prime loans. Wouldn’t the interest expense negate spread?”

    2. By Steve Austin ($6MM Man) on Sep 7, 2009 | Reply

      The interest spread is main priority today get out tonight and if you work there better have mortgage lenders going bankrupt and record loan defaults others reporting delinquencies on notch above subprime dont think the interest spread.

    3. By muncie birder on Sep 9, 2009 | Reply

      The time especially since sp had them the iraq invasion.
      The same suckers who will foot the money too guess who is going to wind up footing the same suckers who is real sneaky to wind up.

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