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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Sarmad Y. Hermiz who wrote (12855)12/30/2003 3:13:50 PM
From: Henry J Costanzo  Read Replies (2) | Respond to of 95596
 
<<the riddle of why foreigners buy US treasury debt at an interest rate of 4%, and tolerate a loss of principal of 20% (compared to Euro or Yen).>>

If you don't mind my taking a stab at that riddle.....g

Many foreigners - European, Canadian, Australian public and private institutions, and individuals - are NOT buying Treasuries.

The buying is concentrated in Central Banks and other public institutions in the Far East.......China, Japan, Korea, Taiwan, Hongkong, Singapore. They are buying precisely in order to prevent any principal loss resulting from an increase in the value of their currencies........