I agree with the slowing growth but isn't the 2 year already pricing in dramatically rapid cuts already? Are your systems counting on something even more black swanish as the base case to be levering up on SHY?
Looking through history, curve (FF vs 2YR) inversions prior to recessions can get far further than currently. It’s tough to know the appropriate level that’s enough, we swim with the tide.
My (un)educated guess... Since the total of all positions excluding CASH is 182.23%, I'm guessing the CASH -82.23% leverage implies borrowing (82.23% of the value of your portfolio) to purchase the recommended positions e.g. Borrowing on margin?
The leverage choice is up to the user depending on the cost & availability, can’t really give specific recommendations on that. Ideally leverage would be obtained via futures, less ideally by margin (as it is more expensive)— but yes, these are the two main options.
I agree with the slowing growth but isn't the 2 year already pricing in dramatically rapid cuts already? Are your systems counting on something even more black swanish as the base case to be levering up on SHY?
Looking through history, curve (FF vs 2YR) inversions prior to recessions can get far further than currently. It’s tough to know the appropriate level that’s enough, we swim with the tide.
Can you give some insight into how you're employing leverage?
Bump. I'd appreciate an answer too. :)
My (un)educated guess... Since the total of all positions excluding CASH is 182.23%, I'm guessing the CASH -82.23% leverage implies borrowing (82.23% of the value of your portfolio) to purchase the recommended positions e.g. Borrowing on margin?
The leverage choice is up to the user depending on the cost & availability, can’t really give specific recommendations on that. Ideally leverage would be obtained via futures, less ideally by margin (as it is more expensive)— but yes, these are the two main options.
Thank you much!
Anytime! We’re here to help