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To: Ken98 who wrote (20221)9/21/2000 12:22:23 AM
From: SeaViewer  Respond to of 436258
 
In 1997, a lot of mutual funds were applying large credit lines, so they could meet redemptions or buy the dip. I saw that on TV.



To: Ken98 who wrote (20221)9/21/2000 2:22:36 AM
From: pater tenebrarum  Read Replies (1) | Respond to of 436258
 
yes, this is correct...and it's precisely the reason why we'll eventually get margined up mutual funds...of course for those not redeeming, this can easily turn into a nightmare. anyone investing in a mutual fund should make certain that such borrowing will only be incurred sparingly if at all. after all a mufu on margin acquires a completely different risk profile...