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  "documentTitle": "optimal leverage presentation",
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  "authorName": "J.P. Morgan",
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  "notes": "Includes a line chart showing credit spreads over time and a small table of default rates.",
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      "kind": "callout",
      "text": "Downside scenarios: At J.P. Morgan, we consider downside scenarios as well as potential gains. We recommend borrowing an amount less than the maximum loan-to-value ratio.",
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      "text": "At J.P. Morgan, we consider downside scenarios as well as potential gains. To that end, we recommend borrowing an amount less than the maximum loan-to-value ratio (the advance rate) that is established for any investment.",
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      "text": "Line chart showing CCC, BB, and A rated credit spreads from 2000 to 2012.",
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      "text": "Global High Yield Spreads",
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      "kind": "paragraph",
      "text": "Selectively adding leverage to an investment strategy can potentially generate yield or augment returns on high-conviction positions without significantly altering your risk exposure.",
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      "kind": "paragraph",
      "text": "Managing market risks: It is important to keep in mind that changes in interest rates or other market risks can magnify gains and losses.",
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      "kind": "paragraph",
      "text": "Not every investment is a suitable leverage candidate. Generally, we recommend adding leverage to investments with lower price volatility, shorter maturities and higher liquidity levels.",
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      "kind": "source-note",
      "text": "Sources: J.P. Morgan, Bloomberg, November 2011. Past performance is not a reliable indicator of future results.",
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      "text": "10-year default rates table: CCC-C 17.50, BB 0.79, A 0.12",
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      "kind": "title",
      "text": "APPLYING LEVERAGE AS A TACTICAL MOVE",
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