The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (27815)	3/4/2005 3:37:24 PM
From: Jim Willie CB	Read Replies (2) of 110194

Mish, astonished at your reply, carry trade profitable one year ago, JYen at 96, now 95, no diff essentially one year ago, TNX at 4.0-4.1%, now 4.3-4.4%, small diff one year ago, borrow at 1.25% in Japan (now 1.5%) so the yen carry trade in 2004 offered huge profit potential 2.5% to 2.7% profit with minor loss on bond principal so roughly 2.3% to 2.5% net profit now multiply by 30 for the steroid driven futures jet assist 75% to 80% profit pushed down to maybe 60% to 65% profit due to bond principal loss come on, you are not math impaired have you noticed the JYen is unchanged in one full year despite massive trade surpluses ??? we all acknowledge the Bank of Japan intervention techniques they create new yen money, then purchase USTBonds you state to my shock this is not profitable it does not have to be for a central bank but hedge funds smell and realize grand profits, huge profits !!! maybe you should tell them that 60+% per year is no good tell them the long rate differential is not an opportunity !!! / jim

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