Over the past couple of days, I’ve seen a bunch of discussions about re-pledging and shared security. In plain terms, it’s about the “same collateral” being used to stand guard in multiple places. The returns look like they stack up into something really tempting, but the risks don’t just vanish out of thin air… I’ve been liquidated once, and seeing a yield curve like that makes me instinctively anxious. Especially now—some regions are again rumored to be adding taxes, and compliance “loopholes” are being tightened and loosened at different times. Once deposit/withdrawal expectations change, if you let your emotions run hot, it’s easiest to treat “the returns you can get” as “the returns you should be getting.”