Stocks Crossing The 13 Week Moving Average <$10.01 Message Board

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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01

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To: J D B who wrote (11608)	9/19/2002 1:34:19 PM
From: James Strauss	of 13094

Jim - I've had a question about the leveraged funds, and their exposure to counterparty credit risks. This link Message 18004619 leads through discussion I've had on another thread about this topic. I'm glad to report that Rydex tells me they do not use JPM for any of their equity index swap agreements (based on my phone conversation this AM). Jim, have you thought about these risks? Am I making a mountain out of a molehill? Dave: Anytime you invest in a company or fund that uses leverage there is a risk of third party credit default and or major interest rate changes that could impact the investment negatively... Here is a brief discussion about counterparty credit risks... cdgroup.fi Rydex has been using leverage in some of their funds for a long time... Hopefully they know what they're doing by now... As long as their funds show they can make money for the investors I'll give them the benefit of the doubt regarding the credit risk of their investments... With that said, you're right to look at all the positives and negatives to try and make an informed decision... Jim

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