I have been holding some GBP cash (200k) at Interactive Brokers, which I intend to spend later, rather than trading. I trade only USD-denominated assets and my margin level is used up with USD balance negative. Rather than having the GBP sitting in the account as cash which earns close to nothing, I want to put it in a cash-equivalent money mkt ETFs that doesn't consume margin. Any?
Not sure what you are asking here. Whether there are nearly risk free lunches to he had? No is the short answer. If you want to park gbp then you get paid the pound benchmark rates minus profit margin for the broker. Same with etfs. There are hardly any etfs in non usd denominated currencies that focus on government debt to start with. So, it depends what you expect. Would you be content with being paid 2.25% per annum minus management fees and reinvestment cost? If you expect more then you need to crawl up the risk ladder which exposes you to interest rate and potentially even equity and credit risk. Which one is it gonna be?
Any advice on cash management in an active portfolio in which cash level changes weekly, sometimes from negative to positive and vice versa