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Re-Hypothication of mutual fund assets?
If you have a mutual fund that has accounts that are "marginable" does that mean they are at risk for "re-hypothication" of those assets in the fund?
2 Answers
- ?Lv 79 years agoFavorite Answer
First off, there is nobody who writes for zerohedge who has a brain and there is nothing there worth reading.
Second off, there are no assets at a mutual fund that are hypothecated in the first place so they can hardly be rehypothecated. The assets at a mutual fund are owned by the mutual fund. Federal law restricts mutual funds from leveraging more than 30% but most open end funds do not do it at all. Index funds don't do it ever. If you are worried about you mutual fund using leverage, read the prospectus as it will be disclosed in there.
