|
PureBytes Links
Trading Reference Links
|
Dear Jim,
The rate of 12% you are referring to maybe the coupon Rate of Return on the
Underlying Bond assumed for Futures Trading and delivery purposes.
The current 3 year bond rate in Australia is trading around 5.3% pa. Who
would have thought we could go so low!!!
David Hunt
http://adest.com.au
----------
| From: Jim Hamer <jphamer@xxxxxxxx>
| To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
| Subject: Gen: Australian Bonds
| Date: Sunday, July 05, 1998 12:47 AM
|
| Does anyone know the current rate of return on a 3 - 5 year Aussie note
| or bond? For some reason (looking at a futures quote on a 12% bond), I
| believe it to be above 12%. Is this accurate?
|
| Which brings me to my next question ... How effectively can any of these
| interest rate differentials (between countries) be taken advantage of?
| If I can obtain US capital at 7%, can I make money on an Aussie bond
| paying 12% by the time I figure my costs of hedging the currency risk?
| (assuming I do not want to hedge the interest rate risk at this time).
|
| Any guidance would be much appreciated.
|
| -Jim Hamer
|
|
|