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Those are standard, unsecured bonds. They're not loans against anything in the endowment.
by vonmoltke 1y ago
Those are standard, unsecured bonds. They're not loans against anything in the endowment.
- rahimnathwani 1y agoRight, and the endowment already uses leverage, so many of the endowment's assets will already serve as security for loans.
- vonmoltke 1y agoSure, but that's margin trading. These bonds have nothing to do with the endowment.
- rahimnathwani 1y agoYeah, sorry I didn't make it clear enough that I was agreeing with you. The endowment's assets are likely mostly/all pledged as security for margin trading, in which case there may be few/no assets left which could serve as collateral for borrowing that will fund payouts.