4 ms·

with leverage..... as aforementioned

• slededit 10y ago
  It would be amazing if you could get leverage at rates below T-Bills. You are most certainly not at lower risk than the US government. It may be possible if you play duration arbitrage taking short term loans to buy long term treasuries. But then your playing a very dangerous game.
  • elastic_church 10y ago
    Would be amazing right Four child replies deep and someone mentions that leverage could be dangerous, might be a new record folks! Ironic if you are successful then poor people that can't even lock up $1,000 for a few years will say you are a rent seeking mess.
    • kgwgk 10y ago
      You can have margin interest rates below the 30-year rate. Is that amazing? (Edit: Never mind, I see this possibility was mentioned in another comment. If your point is that your previuos comment about getting 9% using a leveraged investment in 30-year bonds makes no sense, I agree completely.)
    • slededit 10y ago
      Its not that leverage is dangerous necessarily - if you could get money at a lower rate for a similar time period its in fact nearly risk free. Its just that these opportunities are extremely rare and short circuiting it by using shorter term debt negates the benefits.