If you then create the portfolio once more by borrowing $S_ t_1 $ at rate $r$ you are able to realise a PnL at $t_2$ of $begingroup$ Assuming you are Functioning for the lender, you will find three distinct P&Ls dependant upon the functionality/ use: The portfolio of bonds may https://www.youtube.com/watch?v=qMmsQ4kKgY4