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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: augieboo who wrote (497)	6/17/2002 1:06:42 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

another use of "Contango" it is also used to refer to the difference between the LIBOR (European overnight) rate and some particular other rate e.g. gold lease rate is about 0.9% LIBOR rate is about 2.5% so the gold contango is 1.6% one can lease gold, sell it, buy shorterm Eurobond and pocket a 1.6% interest rate that dont seem like much but if you make the investment longterm Eurobonds at 5.1%, then you have a wide profit now add futures to the mix, with its 30:1 leverage, and you get very serious income / jim