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Going along with the interest income idea, I just put 10% of my funds in 10y USTs. The additional benefit here is that if markets indeed panic in Oct, I might be able to flip these for a quick capital gain in a big VIX spike day. I tried to add a bit to IVV (S&P500) shorts today but it was...

I bought Citigroup and ILFC bonds back in 2009. I did not pay tax on that. They are qualified as 'portfolio interest' which is exempt

Now, this works if the curve is steep like right now. But what if the curve is flat? In that case, putting 5-10% of the capital in higher risk bonds (diversified set of corporate bonds) and keeping the rest in cash is SIMILAR to having all the money in low risk bonds. The idea is that a little...

No 30% withholding for bond interest. At least not for bonds that are 'registered' or some IRS term like that. I'm long USTs (but I plan to 'chase' duration soon as some of my brokers don't pay interest and don't allow bond buying) and I never pay any tax. Bank interest is also exempt. Bond...

I mentioned the idea of shorting BRL against AUD/CAD/NZD but not I'm not so sure I will put the trade on. This was such a ridiculous panic that things could settle down for a while. BRL is up another 2% today. I have never seen so many people cluless about the markets talking about the real (or...

I came up with an idea on how to generate extra income in a low rate world. If anyone has any comments, let me know http://www.elitetrader.com/et/index.php?threads/generating-interest-income-on-idle-cash-balances-kept-in-retail-brokers-a-theory.294576/

For instance, the benchmark (Barclays Lehman AGG index), right now has a avg duration of 5 years and avg maturity of 7 years. Yet it yields 2.4% https://www.ishares.com/us/products/239458/ishares-core-total-us-bond-market-etf This solution doesn't work for me because since I'm a non US trader...

There might be another benefit. If the bonds decline in value, there COULD be a tax advantage by selling them at year end and creating tax losses for overall better tax efficiency. Then you could rebuy similar bonds 31 days later. Now, I'm not US tax expert so I have no idea of what I'm saying...

No. I haven't had the need to put on a FX position on a while. When that happens I will probably use futures or FX at IB, maybe even EFTs. If there are more good brokers out there that still pay good interest I would love to know

Cool. Any idea on what is the implied interest rate that this BRL is offering? Since the CHF fiasco some FX shops have cut down interest payments and increase costs dramatically. I used to love Oanda but now the carry and costs are made the broker almost useless

Lets say a trader has a couple of brokers that don't pay any interest on idle cash balances. Say $250K on each. I believe I figured out a way to generate interest income on those balances with very low risk (finance theory would call it no risk) while NOT hurting your margins and buying power...

There is also a liquidity premium, so its not all the default risk

Here is the Greenspan 'risk management' type thinking I mentioned a couple weeks back that seem to dominate the Fed's thinking these days http://www.businessinsider.com/alan-greenspan-2004-fed-speech-2015-9

OP, What you are describing sounds like a bad idea. If you want to speculate taking FX risk, it isn't as simple as thinking "I will buy the high interest currency and be short a low yielding one". I mean this CAN work but over long periods, its very similar to being long the stock market but...

I missed the EWZ bounce, real shame. I tried to bounce it every day this week. Including this morning but it kept acting weak so I dumped. Then I left my desk for 3 hours and of course, it bounced huge. Story of my life

Real soared today. Speculators shocked to find out that crowded simplistic thesis don't work forever

Goverments want stocks to rise, to bet against them might work for a while (and now it is for political reasons) but its a dangerous game to play imo

El-Erian on Brazi http://www.bloombergview.com/articles/2015-09-23/the-anatomy-of-brazil-s-financial-meltdown I agree with him on this. Brazil is on a slow motion TARP situation. When congress voted down TARP stocks pluged and they reversed their vote. In Brazil congress needs to approve...

OP, how are you going to lever up on FX spot EUR without paying a lot of interest to borrow the other currency?

if anyone can confirm if this will really happen. let me know