Saturday, January 16, 2010

Hedge Fund Seeders How Can A Hedge Fund Levered 4/1 Make Money In Sub-prime Loans. Wouldn't The Interest Expense Negate Spread?

How can a hedge fund levered 4/1 make money in sub-prime loans. Wouldn't the interest expense negate spread? - hedge fund seeders

I do not understand how a hedge fund can be in a position to take advantage where they earn under-performing assets and money. Where can I get super cheap money?

2 comments:

muncie birder said...

Hedge funds are real sneaky. 4-1 is a true conservative for them. Some are 10 to 1 What we can do is money in Japan at a rate of 1.5% on loan and investment, with high-risk mortgage loans they thought they had to pay 9% +. Type identified as a good business over time, especially since the S & P, that the level of investment. Darn. I think that screwed over. Now the guy who saved them all and the banks who lend them money. Those who pay the bill? You guessed it. Discard the same, which is the bill for the Iraq invasion foot.

Steve Austin ($6MM Man) said...

U sound smart enough - that hedge funds, of which close soon. If you are bankrupt mortgage lenders and registry values - other outstanding reports to a level above subprime - I do not think that the interest rate differential is now a top priority - the salt of the evening and when there are better jobs than a CV.

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