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To: jim kelley who wrote (72451)	10/16/1998 2:11:00 AM
From: nihil	Read Replies (1) \| Respond to of 176387

RE: I'd like to borrow $2 million from Japan Why should a Japanese banks lend you money so you can buy higher yielding US Treasuries? If there is money to be made this way, why don't the Japanese banks do the deed? This whole process constitutes the "yen carry trade (allegedly died this week)" Those who conducted it unhedged made a bundle for years, but, alas, most of them are insolvent today after this week's collapse of the dollar. They didn't have enough dollar proceeds to pay off their yen debts. Much better to run it on a 3 or 6 month basis (bigger spread than 10 or 30 year) and buy enough future yen to repay your borrowing ("covered Yen/Dollar interest arbitrage"). If you can't see a planned profit, forget about it and wait till the spread opens up. Much longer and more comfortable life this way.