tag:blogger.com,1999:blog-30643134.post702923463271970398..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: Value investing?Accrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-30643134.post-89795078180535343922006-12-20T07:40:00.000-05:002006-12-20T07:40:00.000-05:00That depends entirely on the mandate from the clie...That depends entirely on the mandate from the client or a fund's prospectus.<br /><br />I'd guess that most situations do not allow overt leverage. If they allow derivatives, though, its quite possible to achieve de facto leverage without the client realizing it. By this I mean leverage is generally thought of as borrowing money to invest. But if you own a CDS for example, you don't have to post any cash, or at least very little. So if had a portfolio of cash bonds plus one CDS contract, then I'm really more than 100% invested aren't I?<br /><br />This gives me an idea for a post on the concept of beta in the bond market that I might write today since its a slow week.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-62976555873796406032006-12-19T15:39:00.000-05:002006-12-19T15:39:00.000-05:00great post
as a follow-up , what leverage are Bon...great post<br /><br />as a follow-up , what leverage are Bond managers allowed , and does this vary amongst different type of funds : mutual funds , endowments , etc. ? also , can they write calls vs. debt ?<br /><br />thanks is advanceAnonymousnoreply@blogger.com