That's your own funding cost; It's not quoted to you. BUT: since you are always borrowing at a rate that's above the yield curve (sometimes by a whole lot), it's basically impossible for you to do an arb (since you can never borrow at the yield curve rate, since that's what the government borrows at; the bank themselves borrow at a higher rate)
What tools are missing if I start a hedge fund today ?
- Thread starter ramaTrade
- Start date
I guess I'm just saying that even if you're just offering an arbitrage free price, you still get something for making the transaction, and being the broker in that deal is pretty sweet, even though I have no idea what they're paid to do those transactions.
To the OP, sorry, but if you really were looking for techniques, this would have been one avenue I would have explored. If you have no idea what we're talking about a little more education is in order.
Because it's damn expensive for me to go call up a 1000 possible counterparty to do this transaction; they are paid to match up buyers with sellers and allow me (as either) to be able to transact efficiently. As far as I'm concerned, that's a good reason for their piece.
And don't be such a tool and presume the OP may not understand. That's just rude (as is this thread hijack; this is my last post on this matter)
And don't be such a tool and presume the OP may not understand. That's just rude (as is this thread hijack; this is my last post on this matter)
God damn it, anyway, that's definitely not covered in the curriculum....so much for that, but I guess I don't see why it's not possible to do....I was going to say special deals, but it doesn't make sense now that I think about where we'd be on the yield curve for an individual to borrow or loan, but you'd still be an institution presumably with way more than an individual's money.
Thanks again, the only reason I'd think the OP might not know is simply because he might not have gone through the CFA curriculum, which even in all my years as an undergrad I still never saw till entering the curriculum.
I don't know what "tool" means. It's thrown around here a lot.
Pretty laughable to believe you're shelling out for a Bloomy and you donât know all the answers to the questions you posted. Hint, theyâre all on the terminal if you know where to look!
The legal costs to set up a true hedge fund are pretty substantial. Then again since you donât need to be a hedge fund and you would just be a sol prop you donât need all of that legal work, especially self funded. Then again you would be limited to listed products and retail margins since you donât have the credit facilities to deal in the OTC markets.
Why go through all that hassle. Just open up a HYIP and use the cash from that to put to work and your HYIP investors and yourself make a return. You can register in the Republic of Panama for 150 dollar.
Get listed on one of the national HYIP registries.
http://hyipbanker.com/
Here is some free boilerplate I did for you.
My name is Ramatrade and I'm the financial manager of this project. We're team of [x number] people from [insert location], also we are financial experts who have experience in investment field for more then [X number] years now! Our goal is to provide you with reliable and professional services to facilitate your participation in the world wide Investment field! We offer multiple investment plans that are suitable for beginners and veterans to achieve the ultimate goal - profit! So do not hesitate and join us to start your way to financial freedom easier then ever before!
We at [name of fund] do not make unrealistic promises, but always deliver on the ones we make. We are a registered company that's been in operation since [x years]. We pay up to X% daily, VIP rates available for larger investments. Cutting-edge anti-DDoS protection, live chat and phone support, user-friendly user accounts. We accept LR and offer 3-level referral program.
Sample image to attract conservative investors.
