Short-term Mexican government bonds yield 8%+. Seems like a pretty good return given that I consider the risk of short-term instruments to be fairly low, since the government is pretty stable and the economy is doing OK. These are denominated in Pesos. Anyone know how an American can go about buying Mexican T-bills?
Just to go short the USD/MXN Retail Spot Forex pair pays 114.38% APR in interest... add some long USD/CHF's to the mix to help Dampen the UPL...and get paid 145.25% APR on it to boot.. use some correlation tables to get the weighting right ans send me 10%! With that much APR you should be able to get your original investment back before any devaluations...but its a gamble in the beginning, but time is on your side.... Michael B.
That's like saying why invest in some Wilshire 5000 fund when you can be 100% margined in GOOG and hedge intraday with Q's. Sell a few DNA collars each month while your at it to kick it up another notch . . .
...ok you got me ...your allowed Don't interuppt their work. They are all busy trying to figure this out!
Heh, that's why I said short term. But, on the other hand, if some prognostications about "Helicopter Money Bernanke" come true the dollar will fall and the peso will appreciate ;-)
Is it worth the risk over only an 8% return? You would be better off buying Dominican Central Bank Bonds for a 21% yield! At least you have a bit of a cushion when the peso devaluates. http://www.bancentral.gov.do/instrumentos_inversion.asp?a=CERTIFICADOS_INVERSION