Tuesday, August 05, 2014

Leverage is good

At least Citicorp thinks so as it has increased its leveraged loans by 74% in the past two years. Now it's pushing its depositors "to borrow up to 5 times your deposit balance to trade in foreign currencies, so you may increase your potential investment power.” 

Isn't five times a little high for the typical depositor/investor? How many depositors understand the foreign exchange market? What selling points is Citi pushing? Will these investments pay off?

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