So I just put it in 5 USTs (yielding 1.4% or so) and BZF (Brazilian Real ETF, pays 10% a year. A lot of my costs are in real) and that's it
It's entirely possible the debt will be fine in nominal terms. After all, the BOJ can buy up JGBs in unlimited quantities. Then once they've done that, hold a press conference where they announce that they're ripping up the bonds and not expecting payment from the government.
If this view is correct, then the JPY continues to depreciate. In this case, the asymmetrical bet (if that's your preferred way of expressing a negative view on Japan) is to buy options that express a negative view on JPY. For example, a USD/JPY call with a strike price of 200 or 250.
Is there a particular reason you prefer BZF to the CME futures (http://www.cmegroup.com/trading/fx/emerging-market/brazilian-real.html) ?
It's funny, IBKR allows trading of RUB,
https://www.interactivebrokers.com/en/?f=/en/trading/pdfhighlights/PDF-Forex.php
but BRL is not provided, even though the latter is a more stable currency.
Hi,
True. I recall that Martinghoul made a similar suggestion. The question is, is that available to retail traders? As far as I know, there aren't retail forex houses offering options that go several years out.
FXY, the yen ETF, only has options out to 2017
Hi,
True. I recall that Martinghoul made a similar suggestion. The question is, is that available to retail traders? As far as I know, there aren't retail forex houses offering options that go several years out.
FXY, the yen ETF, only has options out to 2017