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Ep. 926: Peter Mallouk Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Risk of Borrowing Money to the Federal Government

The way to look at it is always to go back to the treasury. If you loan money to the federal government, we call that a treasury bond. A corporation in trouble might pay you 4 or 5 or 6%. No one will pay you 4 unless you're going to take significantly more risk than the treasury. That's why people are paying several hundred percent more than the 10-year treasury.

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