The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LLCF who wrote (28143)	3/8/2005 8:09:42 PM
From: mishedlo	Read Replies (1) of 110194

In fact the price of the currency hedge is BASED on the interest rate differential.. there is no free lunch in general... of course there are times where day to day the i-banks can accumulate these trades due to flow factors in the market. Thats how they get these trades on, but they ARE NOT EVER collecting the entire i rate spread that I"ve ever seen. DAK Well in this case, not only are they NOT collecting the entire rate spread but they would be better off just doing the whole ENTIRE mess in US$. In short the YEN carry trade sucks compared to straight US$ carry!!!!! Mish

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next