The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: MulhollandDrive who wrote (108680)	3/9/2008 8:54:44 PM
From: Lizzie Tudor	Read Replies (1) of 306849

no 32:1 is not the worst of who is out there but it is definitely on the extreme end of leverage. I don't know how Carlyle pitched themselves to their clients.... was it as an extreme, highly leveraged vehicle or more like "we only invest in AAA grade securities" etc. LCTM started out with a 25:1 model. They only hit 100:1 when an extreme event occurred - something that their models said would only hit once in a universe or something. I believe most highly leveraged hedge funds, even the big ones, top out at about 10:1- but I will try to find some hard data on this. 32:1 is way out there.

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