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It’s 0.5% plus a portion of the asset appreciation, not just 0.5%


Banks and investment firms are not allowed to loan money out privately for less than the AFS, which is 3.72% right now: https://www.investopedia.com/terms/a/applicablefederalrate.a...


It's not a loan, it's considered a security.


It's a loan on securities, like a home equity loan. They are considered loans and such must follow the minimum interest rules.




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