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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (1285)	2/17/1999 11:48:00 AM
From: Henry Volquardsen	Read Replies (3) \| Respond to of 3536

Chip I don't believe there is a correlation. This is just fine tuning, for the most part by the Fed. Also the broker loan rate, which is what securities companies use to finance margin lending is correlated, I believe, with the prime rate. Both rates are fairly stable and do not respond to minor fluctuations in fed funds rates. Also I would believe that most investors are not making their trading decisions based on minor movements in margin lending rates. When I use margin I don't even bother to look at the rate until after I get my month end statement. Henry