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

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To: mishedlo who wrote (28096)	3/8/2005 1:31:38 PM
From: Jim Willie CB	Read Replies (2) of 110194

I believe yen carry trade must be done in USTBond futures that could be my error the currency risk is 18% if leveraged borrow side is in Japan the leverage must be kept clear of the yen currency exchange risk borrow 1.5% money from Japan, say $10M then go for 30:1 leverage in USTBond futures contracts 4+% yield grows in contract value over time the yield differential is built-in to contract value leverage comes from the contract itself currency risk with yen comes off the top, after leverage 100% minus 18% = 80% or so unsure if USTBond futures are backed by TENS contracts or THIRTYS make sense? / jim

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