Mark to market or not

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Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Mark to market or not

Post by Fraser921 »

We have had debates on this board whether hedges should be marked to market. Some say ignore it, it's just noise. Ignore the 1.b losses. That the law was stupid.

Interestingly, banks didn't have to mark to market their holding's (long term bonds). As rates moved up those bond values fell down. They did not have to mark to market. Well, unfortunately , they had to dump those long bonds and crystalized the losses ie values below purchase costs to meet redemptions.

Tell your wife you don't have a loss on CRK because you haven't sold it yet when you bought at 20 and now worth 10.

Some times the whiners and contrarians are correct. Remember that!
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