Where are you parking your hard earned dollars?

[SwingToWin]

I'm just capturing your information-filled post in case you decide to delete it later.

since you consider this information to be so valueable, you could also have clicked the like button... I'm collecting likes here

seriously, i won't delete it. everybody can use it and hopefully profit from it. why shouldn't we share our knowledge? --- together we can be better!

Did you mean to say 1% vice 10% on USD money market? With 1 year treasuries at .27%, you're clearly not lending to a "reputable" bank if they have to pay that much to attract capital. There has to be some significant risk you're unaware of, or some kind of back story or else that would be arb'd away in a heartbeat! Love to be wrong, if so please do provide details as I'd love to get in on that.

hehe now I got your attention yes, I did mean 10% a year for deposits in USD. 1yr fix term (you can also take shorter or longer) and comes out 9,5% after tax.
the banks are very reputable. those that I refer to have been in business since decades and belong to international groups like CIMB, Standard Chartered, HSBC, ANZ...
Moody's rates them in investmentgrade, typical bank ratings.
sorry, there's no "significant risk you're unaware of, or some kind of back story". it's a simple bank deposit. they've been reviewed by PWC and are top.

yes, I know that it sounds too good to be true. but it is
I told you, it's an "insider" that just a few people know of. it's not available in the US, you need to fly to another country to open the account.

or else that would be arb'd away in a heartbeat!

so now I'm in. How can we arb it? I'd love to borrow money at 1% and collect 10% in interest myself. But I don't see a way how to do.
Last year I sent e-mails to dozens of banks in Germany asking for a big "business loan", giving them details about the banks, even offering them the bank account books as security.
well, not one even bothered to write back.
what could we do? any ideas?

 

[Visaria]

how much money will they accept for 10% interest? we have bank accounts here that pay over 5% on sterling ...unfortunately you are only allowed to deposit 250 pounds a month or some nonsense.

 

[xandman]

10% from a global bank? Not in US dollars.

 

[xandman]

how much money will they accept for 10% interest? we have bank accounts here that pay over 5% on sterling ...unfortunately you are only allowed to deposit 250 pounds a month or some nonsense.

What country is this?

 

[SwingToWin]

yes in US Dollars
well basically, to be true. if you really hand them USD cash notes and want to get back USD cash notes, they give you 7%, maybe 8%.
but with a small trick you get your 10% in nominated USD.

one of the banks I deposited in has 170 million USD under management. the others are probably similar. there are hundreds of banks where you can deposit.

deposits start at 10 USD.
maximum I don't know. I enquired about 1 million and the account manager said no problem.

the problem is... I don't have 1 million to deposit!

 

[xandman]

yes in US Dollars

I see your from Germany. The only way i can envision this type of disequilibrium is that the same populace with access to these rates also have an incredibly high cost of capital. ie prime rate above 6% or more.

 

[xandman]

Forgot to mention, emerging market banks when their is a local currency crisis. Yet, the banks you mentioned are global franchises.

 

[SwingToWin]

I see your from Germany. The only way i can envision this type of disequilibrium is that the same populace with access to these rates also have an incredibly high cost of capital. ie prime rate above 6% or more.

now I see experts starting to join the thread
yes, that's true. the rates that that those poor folks in these countries have to pay for their credits are up to 30%. most are in the 15% region.

but still this is a perfect investment opportunity for us
because we do get 10% for our USD.
and if we can borrow USD for less, we have leverage and can arb it

 

[Sig]

PM me.

since you consider this information to be so valueable, you could also have clicked the like button... I'm collecting likes here

seriously, i won't delete it. everybody can use it and hopefully profit from it. why shouldn't we share our knowledge? --- together we can be better!




hehe now I got your attention yes, I did mean 10% a year for deposits in USD. 1yr fix term (you can also take shorter or longer) and comes out 9,5% after tax.
the banks are very reputable. those that I refer to have been in business since decades and belong to international groups like CIMB, Standard Chartered, HSBC, ANZ...
Moody's rates them in investmentgrade, typical bank ratings.
sorry, there's no "significant risk you're unaware of, or some kind of back story". it's a simple bank deposit. they've been reviewed by PWC and are top.

yes, I know that it sounds too good to be true. but it is
I told you, it's an "insider" that just a few people know of. it's not available in the US, you need to fly to another country to open the account.



so now I'm in. How can we arb it? I'd love to borrow money at 1% and collect 10% in interest myself. But I don't see a way how to do.
Last year I sent e-mails to dozens of banks in Germany asking for a big "business loan", giving them details about the banks, even offering them the bank account books as security.
well, not one even bothered to write back.
what could we do? any ideas?

 

[StarDust9182]

Did you mean to say 1% vice 10% on USD money market? With 1 year treasuries at .27%, you're clearly not lending to a "reputable" bank if they have to pay that much to attract capital. There has to be some significant risk you're unaware of, or some kind of back story or else that would be arb'd away in a heartbeat! Love to be wrong, if so please do provide details as I'd love to get in on that.

In Canada, I was personally offered 3% daily interest rate up to 500000K at a virtual bank for 5 months. I have 4 "big 6" banks I deal with in various ways.My wife can't get that same offer and as I checked out the store to ensure it was not a phish, they didn't know anything about it either. They put me on the phone to a downtown office who confirmed it. Like you I began to wonder how can they pay that? Then I began to wonder, since they must make spread, are they in overnight repos and junk bonds to earn the spread. Long story short, I will keep my 1% safe and wait for market re-entry. I see the Bond market as just too shaky world wide right now.

I can borrow daily money at 2.85% to earn 3%, but I have lots of cash currently as I wait for Greece to play out somehow.

As mark twain once said - what keeps me up at night is not the return on my money, but the return of my money. I can make the 2% up again easily. Safe means safe money.