CARRY TRADE QUESTION??

Is any one informed with this investment technique? Can it be used by particular investors (not only businesses). Apparently it involves receiving out the 0.00% seductiveness loan from the Japanese bank, as well as regulating which loan to buy an investment which pays the tall seductiveness return? I consider thats how it works. Anyway-i non-stop the brokerage comment with the bank in Iceland final year. Iceland banks compensate in between 8-14.00% seductiveness upon assets accounts as well as (Their) made at home bonds. Can i use the lift traffic to my advantage? Thanks.

Tagged as: , ,

{ 2 comments… read them below or add one }

traderbobhn June 24, 2010 at 3:03 pm

Depends if your broker has a multicurrency account system. For example, with the large brokers for professional traders (InteractiveBrokers, Tradestation, etc) you can name what base currency you want to use. For a carry trade you would name your base currency as the Yen, and then short a japanese stock and hedge it with a long synthetic stock and use the cash to buy, through the same broker, a higher paying fix income security in another currency (dont think the Icelandic Kroner is available through these. Or you should just be able to buy the bond in question on margin paying yen interest rate. Again within the same broker.

Unless you can just go to a japanese bank and borrow to do this, this is the one way I though that it could be done. I know many small japanese investors are doing it. Their is an article in this week’s The Economist about it.

Frank Castle June 24, 2010 at 3:44 pm

Yes. (If you speak japanese)

Leave a Comment

Previous post:

Next post:

http://www.maxprofitsinvest.com