TexasDevilDog
12-17-2008, 12:04 PM
http://online.wsj.com/article/SB122947172015212225.html?mod=testMod
Calpers in recent weeks said it expects to report paper losses of 103% on its residential investments in the fiscal year ended June 30. That's because Calpers invested not only its own money, but billions of dollars of borrowed money that must be repaid even if the investment fails. In some deals, as much as 80% of the money invested by Calpers was borrowed. ... Rest by Subscription
Why would a state pension fund borrow money to leverage gains? :rolleyes:
Calpers in recent weeks said it expects to report paper losses of 103% on its residential investments in the fiscal year ended June 30. That's because Calpers invested not only its own money, but billions of dollars of borrowed money that must be repaid even if the investment fails. In some deals, as much as 80% of the money invested by Calpers was borrowed. ... Rest by Subscription
Why would a state pension fund borrow money to leverage gains? :rolleyes: