{"id":71782,"date":"2019-11-15T01:02:43","date_gmt":"2019-11-15T06:02:43","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=71782"},"modified":"2019-11-15T01:02:43","modified_gmt":"2019-11-15T06:02:43","slug":"you-cant-just-call-loans-options","status":"publish","type":"post","link":"https:\/\/www.hedgeco.net\/news\/11\/2019\/you-cant-just-call-loans-options.html","title":{"rendered":"You Can\u2019t Just Call Loans Options"},"content":{"rendered":"<p>\n(Bloomberg) A pretty ordinary way for a hedge fund to invest is that it borrows money from a bank and uses that money, along with the fund\u2019s own equity, to buy stuff. If the stuff goes up the hedge fund pays back the bank\u2019s loan and keeps the profits. If the stuff loses value the hedge fund takes the loss, reducing its equity. If the stuff loses a lot of value then the equity will reach zero, the loan won\u2019t get paid back, and the bank will eat the rest of the loss. If the fund puts up $20 and borrows $80 from the bank, it can buy $100 worth of stuff. <\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2019-11-13\/you-can-t-just-call-loans-options?srnd=premium-middle-east\">To read this article:<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) A pretty ordinary way for a hedge fund to invest is that it borrows money from a bank and uses that money, along with the fund\u2019s own equity, to buy stuff. If the stuff goes up the hedge fund [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-71782","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/71782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=71782"}],"version-history":[{"count":1,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/71782\/revisions"}],"predecessor-version":[{"id":71783,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/71782\/revisions\/71783"}],"wp:attachment":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=71782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=71782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=71782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}