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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?


To: Bosco who wrote (4739)6/22/1998 3:45:00 PM
From: Zeev Hed  Respond to of 9980
 
Bosco, the lure of the "carry Trade" at five percent difference (with leverage of 90% that means 50% on your money) is too big a temptation for currency speculators. They will set back their straddles (shorting the Yen and paying .5% interest or so and buying the dollar and getting 5.5% on it).

Zeev