Mexico 28-day T-bill = 8.6% Ann Yield

[jamis359]

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?

 

[risktaker]

What do you suppose will happen to your 8% yield if the peso depreciates?

 

[ElectricSavant]

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.

 

[crazy_trader]

Which broker let you do that?

 

[ElectricSavant]

The Big O and you get paid daily on the carry...directly to your balance not a rollover of price!

Quote from crazy_trader:

Which broker let you do that?

 

[illiquid]

Quote from ElectricSavant:

Just to go short the USD/MXN Retail Spot Forex pair pays 114.38% APR in interest...

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 . . .

 

[ElectricSavant]

...ok you got me ...your allowed

Don't interuppt their work. They are all busy trying to figure this out!

Quote from illiquid:

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 . . .

 

[jamis359]

Quote from risktaker:

What do you suppose will happen to your 8% yield if the peso depreciates?

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 ;-)

 

[Surdo]

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

 

[stock777]

Quote from Surdo:

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

Too bad the site is not in English. I'll have to find some other place to park my 50 million.