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

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To: mishedlo who wrote (28049)3/8/2005 10:05:31 AM
From: Jim Willie CB  Read Replies (2) of 110194
 
you have misunderstood on what the yen carry trade is
on every single attempt to explain it

operate out of USA
borrow Japanese money at 1.5%
leverage with commercial loan at prime rate
invest in USTNote
pocket 300 bpt differential
suffer small if any yen rise
take home 100% at year end

this is not short yen and long US$
this is leveraging 30:1 on the rate differential
NOT THE CURRENCY DIFFERENTIAL

stop being so blockheaded
you are one of the smartest guys I know
this trade has been profitable every single year since 1995
/ jim
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