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To: Daniel Chisholm who wrote (80)9/10/1998 9:00:00 AM
From: Sun Tzu  Read Replies (3) | Respond to of 10655
 
Daniel thanks for the quick response. Your analysis is dead on the money and I did mean what I said. I've been so negative for so long on Japan that I can't remember the last time I considered investing there. Everyone thinks the next shoe to drop is China (or lately LatAm). I think it will be Japan. I can go over this later if you want. Back to our point. I've known about Yen carry for more than a year now. But I've never figured out how I can pull it off. I talked it over with a friend of mine who is a structured derivative specialist. She suggested a cross currency swap. The trouble is that her firm has a minimum trade size of $5 Mil and I my trades only ocasionaly make it into 6 digits.

How is your suggestion the same as a cross currency interest swap? As I understand it, if I short Yen I have to put up some margin. So not only I will not get the 5% interest that I desire, I will have to put up some USD of myown. How will I collect my interest on the sale? Have you done futures yourself?

ST