Just as predicted, Long-Term's on -the-run and off-the-run bonds,
snapped back quickly. Long-Term made a magical S 15 million-magical
l because it hadn't used any capital .
As Scholes had promised,
Long-Term had scooped up a nickel and, with leverage, turned it into more.
True, many other firms had done the same kind of trade.
"But we could finance better," an employee of Long-Term noted. "
LTCM was really a financing house.