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mcarther101 t1_j9dl40e wrote

Reply to comment by Cayman987r in Any Bear agrees?... by jeanpaultru

Can you explain to me how Margin T bill works? Since it’s practically zero risk, why not make 4% on $1M if buying power of $100k can be 10x? Am I missing something, why wouldn’t everyone just leverage up on buying treasury securities for guaranteed cash flow?

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Cayman987r t1_j9dlpfo wrote

Because margin isn’t free

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mcarther101 t1_j9dp5cs wrote

Ahh.. duh.. I just looked up margin rate… costs more than bond yields

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