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Right, and the endowment already uses leverage, so many of the endowment's assets will already serve as security for loans.
by rahimnathwani 2y ago
Right, and the endowment already uses leverage, so many of the endowment's assets will already serve as security for loans.
- vonmoltke 2y agoSure, but that's margin trading. These bonds have nothing to do with the endowment.
- rahimnathwani 2y agoYeah, sorry I didn't make it clear enough that I was agreeing with you. The endowment's assets are likely mostly/all pledged as security for margin trading, in which case there may be few/no assets left which could serve as collateral for borrowing that will fund payouts.