Mr.Canberra
Arch-Supremacy Member
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- May 22, 2014
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Interest Rate Differentials/Arbitrage
Not exactly trading interest rates but arbitrage strategy. If talking about Renminbi. Can flip with onshore and offshore exchange rates plus interest rate differentials. The amount compounded over numerous years is staggering hahahahaha! It is like free money sia!
China side the CNY yields increase to 5% p.a. for longer term (12-18 months) products already. Shorter term (3-6 months) about 4.5% p.a.
1) Until now I am still wondering why nobody on SSI use arbitrage strategy to protect purchasing power? Before one learns how to make money from investment/trading. The first and most fundamental step is to protect your purchasing power.
2) Nobody talks about maintaining a basket of major currencies to hedge. This one I learn from MAS. When one currency is down, another currency will re-balance the shortfall.
Too chim to most people? Uncle no University degree also can understand. Or most punters only can tak che to score at exams but brain cannot get creative or experiment?
arbo trade interest rate better.
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Not exactly trading interest rates but arbitrage strategy. If talking about Renminbi. Can flip with onshore and offshore exchange rates plus interest rate differentials. The amount compounded over numerous years is staggering hahahahaha! It is like free money sia!
China side the CNY yields increase to 5% p.a. for longer term (12-18 months) products already. Shorter term (3-6 months) about 4.5% p.a.

1) Until now I am still wondering why nobody on SSI use arbitrage strategy to protect purchasing power? Before one learns how to make money from investment/trading. The first and most fundamental step is to protect your purchasing power.
2) Nobody talks about maintaining a basket of major currencies to hedge. This one I learn from MAS. When one currency is down, another currency will re-balance the shortfall.
Too chim to most people? Uncle no University degree also can understand. Or most punters only can tak che to score at exams but brain cannot get creative or experiment?
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