How do HFs practically use leverage?
Reading a lot about MMs and SMs levering up but I'm confused about how the math on that works. Also, how do they actually get the leverage (assuming it's not some simple margin).
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Bank loans at low interest
Well yes, it is margin. As simple as that.
Mostly through the prime brokers borrowing on margin.
If you're talking about fixed income, repo borrowing is more significant than via prime brokers.
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