Hacker News new | ask | show | jobs
by vasilipupkin 3946 days ago
A leveraged portfolio is a bad comparison because you could also leverage this portfolio. Let's compare apples to apples. There is no unlevered investment right now that can give you such high returns, that I can think of.
1 comments
001sky 3946 days ago
No, its not a bad comparison. Any decent investment vehicle is not putting money out the door unless they are clearing 20% in their base case returns. The point is you expressly RAROC the two portfolios. A retail investor is not going to look at any of this as relevant, so avoiding leverage is pointless. Anyone benchmarking this asset class has access to leverage (and in this market, at low yields).
link
vasilipupkin 3942 days ago
right. But since I can lever anything, leverage as a factor is irrelevant. I could also lever this portfolio and get 100%. The point is you need to compare apples to apples, not apples to oranges.
link