[001sky]

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).

[vasilipupkin]

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.