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To: Aaron Cooperband who wrote (63594)	8/30/1998 2:08:00 AM
From: nihil	Respond to of 186894

Aaron: Covered interest arbitrage Thanks for the comment. The last time I ran the numbers it showed a positive fully-hedged profit, but that was some time ago and numbers change. As I remember it, cover shot about three-fourths of the gross profit, but it was bullet proof, so one could swing a bigger deal with the same capital especially if you collateralized the yen loan directly with the T bills. Of course, arbitrage is like sex for me -- lot of fun to contemplate and talk about, but no one will let me do it to them. If I were to find some one who would let me do it, I would prefer to do it safely, frequently, and a lot, even if it were less fun each time. However, I would much rather do it unsafely occasionally than not at all ever. I don't know about the Japanese.