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Why many hedge funds invest 70-90% in T-Bonds, and only 10-30% in stocks,Forex, etc.
- Thread starter crgarcia
- Start date
Quote from crgarcia:
Usually the 10-30% in the Stock Market, Forex, Currencies, is invested with high leverage, typically futures?
Why not invest the 100% in outright ETFs, stocks, etc.
Perhaps a merketing strategy?: You are only risking 10% of your capital?
You don't know what they do. Hedge funds are mostly secretive and there is no such data available.
not just t bonds!, t bills, notes etcetera.. these are all
perfectly acceptable by MOST US futures exchanges for MARGIN.
Why not put 50 million into bonds, bills, and notes and earn INTEREST while at the same time .. using the bonds bills or notes for 85 to 90 % margin. I.e. 100k= 90K usuable for margin while earning interest. Most brokerages allow one to do this even individuals.. there is a cost of roughly 30 dollars to buy and sell the notes/bills which have values of as little as 10K. .. of which 9000 to 8500 could be used for margin. However, if you incur a margin call you must have cash ready to bring account back up.
There a little useful knowledge.
perfectly acceptable by MOST US futures exchanges for MARGIN.
Why not put 50 million into bonds, bills, and notes and earn INTEREST while at the same time .. using the bonds bills or notes for 85 to 90 % margin. I.e. 100k= 90K usuable for margin while earning interest. Most brokerages allow one to do this even individuals.. there is a cost of roughly 30 dollars to buy and sell the notes/bills which have values of as little as 10K. .. of which 9000 to 8500 could be used for margin. However, if you incur a margin call you must have cash ready to bring account back up.
There a little useful knowledge.