Brazilian Treasuries? 10y Yield 12%

[kmiklas]

ILF etf has 11.5% dividend and barely moves.

Yeah… until it does…

 

[mervyn]

Looks like IB does offer Non-US bonds.

TWS (Desktop) -> Classic TWS -> Analyic Tools -> Bond Scanner -> Non-US Sovereign Bonds

Look at those fat yields!

Thanks, Keith
Non-professional -- not licensed -- opinion only

View attachment 315485

yes but you need to count the cost of pretecting your local currency hence the perfect asset swap.

 

[kmiklas]

yes but you need to count the cost of pretecting your local currency hence the perfect asset swap.

Pretecting? You mean predicting or protecting? How? Hedge?

 

[mervyn]

Pretecting? You mean predicting or protecting? How? Hedge?

Typo on iPhone. Yes you need to hedge, currency, interest rate, and now inflation. Retail traders shouldn’t trade large amount because retail can’t get swap agreements. 12% can be easily wiped if the currency depreciates the same amount.

 

[kmiklas]

Typo on iPhone. Yes you need to hedge, currency, interest rate, and now inflation. Retail traders shouldn’t trade large amount because retail can’t get swap agreements. 12% can be easily wiped if the currency depreciates the same amount.

Thank you

 

[mervyn]

Thank you

21-Day 912796X53 05/25/2023 6.200% 6.326% $99.638333

Just remember, if you are benchmarking with Ts, 12% is not a good risk number.

Just bought 21 days T today at an investment yield of 6..326%

 

[traderwald]

Looks like IB does offer Non-US bonds.

TWS (Desktop) -> Classic TWS -> Analyic Tools -> Bond Scanner -> Non-US Sovereign Bonds

Look at those fat yields!

Thanks, Keith
Non-professional -- not licensed -- opinion only

View attachment 315485

Thank you !

which market data subscription is required for this ?

Also, if you buy in IB, where does the Brazilian govt. deposit the interest amount ?

 

[kmiklas]

Thank you !

which market data subscription is required for this ?

Also, if you buy in IB, where does the Brazilian govt. deposit the interest amount ?

Re: data feeds, again I have to look—I’ll get back to you. I work the bond markets a lot, so I got on the phone with them and signed up for all the bond data feeds that IB offers.

I have not bought Brazilian bonds yet, but I believe IB keeps the bond on their books in IBs name, secured by your cash. I think this is true for all bonds—even US Treasuries. So the coupon and maturity payouts go to IB, which in turn forwards them to your registered account.

Should they default, IB is protected because the position is secured by the ca$h in your account used when you placed the order.

 

[Svalbards]

@kmiklas
Yes I’m interested in Brazilian debt as well. Buying the local currency bonds would obviously be a big FX play. Brazil has managed their inflation way better than many other industrialized countries this time around. Realized real rates have stayed well into positive territory. It should help the BRL.
Brazil has some external debt issued in BRL.
Did IB say if they offer the BRL denominated paper?
Realized Real rates (Benchmark minus Core inflation rate):

 

[zdreg]

People do trade those bonds, but they subsequently entered a PAS.

PAS?