I actually have several ideas on the backburners, but this one seems to be the easiest (in principle alone, and I stress that), which is based on the idea of an offshore finance company. I know they used to have plenty of offshore institutions like this that pushed all of their capital into Fannie May and Freddie Mac debt when that was the âinâ thing; but at this point, they all seem to be an extinct species. The objective would be to: a) secure equity b) create and manage a pool of U.S. Treasuries via (hopefully) infrequent spot market transactions c) issue lower interest, asset backed commercial paper through the Euromarkets (denominated in U.S. Dollars Only) d) leverage it up to a reasonable 20:1 e) collect the spread on the interest rates f) go native when it comes to derivatives and let the markets do as they will g) that being said, I wouldnât be averse to buying a 10/50 year forward start payer IRS, through a separate entity, just to bet that the rates have nowhere to go but up over the next half century. Besides going back to college and getting a DBA and then getting an entry level job at an investment bank and working it until I realize that seven or eight figures a year is too little to suit my various psychological insecurities; how can the distance between point A (this seemingly farfetched idea) and point B (actually seeing my little money factory churning out the spreads in real life) be shortened, in terms of time, and obviously, effort? Any Thoughts, Opinions (or ribbings about wanting to be a banker instead of a trader)?
I'm not quite sure I understand what you want to do. If your objective is to create a carry trade why don't you start with something simple and easily tradeable?