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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (28049)3/8/2005 2:19:30 AM
From: Colin H  Read Replies (1) | Respond to of 110194
 
Hedge fund making a Yen carry trade might also pick up some futures to offset currency risk. They can leverage into that too!

It sure looks like a lot of someone is doing a lot of something out there.. <g>
occ.treas.gov



To: mishedlo who wrote (28049)3/8/2005 10:05:31 AM
From: Jim Willie CB  Read Replies (2) | Respond to 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