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Matt Levine

Take the Swaps Off the Balance Sheet

Also greenwashing rules, hotel NFTs and Dot Collector.

Here is a trade that you could do:

This is a very popular and normal trade. You are getting paid an interest-rate margin: You pay 3% to borrow $100 million, you effectively lend it to the hedge fund at 4%, and you collect the $1 million difference as profit. The stock is almost irrelevant to you.  The hedge fund wants it to go up, but you don’t care. This is a fixed-income trade; you are getting paid the difference between two interest rates.