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Leveraged US treasury Bonds

  • #1
  • First Post: Nov 11, 2008 11:03pm Nov 11, 2008 11:03pm
Does anyone knows how to find leverage to US Treasury bonds? we get an annual yield at least of 1%, just imagine, if you have a 100:1 leverage over 1% we are taking with almost 0 risk.

Dont want to imagine a 400:1 leverage.

but how do we get it???
The market can stay irrational, longer than you can stay solvent.
  • #2
  • Nov 11, 2008 11:18pm Nov 11, 2008 11:18pm
Quoting bmvmx
Does anyone knows how to find leverage to US Treasury bonds? we get an annual yield at least of 1%, just imagine, if you have a 100:1 leverage over 1% we are taking with almost 0 risk.

Dont want to imagine a 400:1 leverage.

but how do we get it???
If anyone can get it easily without any risk, nobody will be working in the states.
  • #3
  • Last Post: Nov 12, 2008 2:28pm Nov 12, 2008 2:28pm
Think about this...leverage is only useful when cost of leverage is less than the return.

Return > leverage

profit = return-leverage

Most brokers offer margin at 4% (correct me if i'm wrong), you're aiming at a 1% return...

profit = 1-4

This is the opposite of arbitrage...

Also, bigger players create leverage by shorting the treasuries.
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