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Oct 1, 2022Liked by Peter Nayland Kust

"margin calls among UK pension funds"

What the hell is a pension fund doing buying bonds on margin?

Sure, you can make more money when the price of an asset is increasing by buying it on margin, but the problem is if the price of the asset decreases, a margin call will wipe you out. I'm somewhat aghast that pension funds are allowed to use margin at all, and I'd really like to know what their leverage ratio was on these "investments".

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