/biz/ - Business & Finance

>>56588386
>>56588473
On the slim chance you're actually unironically not trolling about this retarded free leverage meme, I've pulled up the actual swap financing costs straight from the latest annual report in Edgar.

Here you go. The answer is that the precise cost of leverage lies between 5 and 6%. Note that UPRO has 2 turns of leverage, so total finance costs are over 10%. This expense is before adding the management fee, as I've previously noted.

>if you can borrow enough to return 3x you can borrow enough to return 3.1x or 3.2x.
First off, this is not mentioned anywhere because it's not actually something UPRO is doing. It's just some meme bullshit argument you're making to waste more time.
Secondly, even if they were doing this, the perceived benefit is still based on a complete misunderstanding on your end of how leverage actually works. Leveraging up more doesn't magically negate costs, it ADDs more costs. The cost would only be negated if S&P rose enough to offset that cost.