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Politics : Ask Michael Burke

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To: $Bill who wrote (81321)	5/31/2000 11:20:00 AM
From: Knighty Tin	Read Replies (2) of 132070

BuckBill, I am not mostly out of equities, though I am mostly into options. However, I hold cash to collateralize these holdings. My cash is generally in money funds that are either 100% T-Bills or government money funds that actually take delivery of collateral. The latter is very important. If it ever gets to be crunch time, it is important that you have the T-Bond collateral in your own vault when the big bank says, "heh, heh, can't pay back what you loaned us due to losses on derivatives and margin loans to idiots." Many supposedly govt. money funds do not take delivery on overnight repos. They make a couple of extra basis points in interest, but if the fit hits the shan, they'd better hope their lawyers are good and fast.

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