Eur Wedge On De Edge


#1721

:confused:
Why do you guys just keep making stuff up? You can’t all be this thick.
If a family office has to fund at 3% … then they’re not much of a family office!


#1722

Borrow short term at 0%, lend long term at 4%. Absolute genius!


#1723

By that logic, we should have all piled into property in 2008.


#1724

Oh yeah. There was a report of ungentlemanly behaviour in the thread. At Christmas too. I was going to post a link to Captain Sensible’s Happy Talk but had forgotten how appalling it is.


#1725

Euro zone debt down for first time in 6 years

rte.ie/news/business/2014/01 … zone-debt/


#1726

Hope no one is using debit/credit cards for hot money
businesspost.ie/#!story/Mark … 0139888e13


#1727

Well played Turbo. Well played. :laughing:
You have any idea how much this trade is up?
No didn’t think so. :laughing: :laughing: :laughing:
At least gold is. . . . . . . . . awwwwwwwww :sick:


#1728

Well done!

So you came back to gloat? True to form…

I hope you or your clients didn’t get a margin call after that poor start.

Stay classy!


#1729

Daniel,

What is your entry point and have you placed a stop loss? I would have thought, if you are buying this on margin you are betting on the price of this or are you buying the product itself?
Are you betting on this to make money or are you betting on this as a hedge? (the reason I ask, your attitude towards it is very different from when its winning to when its loosing).

I presume this is the product in question
au.finance.yahoo.com/echarts?s= … X;range=1m

Eg-as the yield increases, you are making money and vice versa?

Can I ask your reasoning for this bet or is it just a reliable hedge? If there was a stock market crash and people flocked to bonds, wouldn’t this drive the price down? Would you be tapped out?

Apologies for the “retarded” questions, but I want to get an understanding as to what you’ve bet on, and if it makes sense to me, I just might join you on the bandwagon.

Conor


#1730

As the yield decreases, the price of the asset goes up. So, if long 30yr futures and yield goes down, makes money. Stock market crash would theoretically lead to price of bonds going up & yield down.

At the moment, we’re currently seeing stock indices and bond prices going in the same direction. It’s the big topic in the market at the moment (after ECB).

My view is that it’s a chase for yield. Better to hold European bonds than put on deposit. Better to hold US than European over the last few weeks if you were expecting major euro depreciation.


#1731

DP was suggesting purchasing the 30 year Zero Coupon Cash bond not future; the strategy suggested is highly dependent on the interest rate you’d pay on the margin (leverage)

Zero Coupons are more sensitive to interest rates because the “pay out” is so far into the future


#1732

irishtimes.com/business/sect … -1.1863098


#1733

Sad when a little bit of shopping around will get you 2% for instant access, 2.25% for a term deposit and 4% for regular savings.


#1734

where’s the 4% fungus?


#1735

Nationwide UK Ireland.


#1736

Cheers.


#1737

But regular saver usually means your balance starts at 0 and can only increase by max a grand a month.

By the time you’ve a lump they change the terms or have a cap.

Better than nothing but a bit of a gimmick


#1738

The only lump sum term deposit I see that is above 2% is PTSB – a complete basket case bank – or KBC. Even those are barely above 1% net of DIRT. The rest are under 1% net, which is your return for investing long term with our other dodgy institutions. Keeping money in an Irish bank for a few hundred quid return on a hundred grand is not even close to adequate recompense for the risk involved. I have money on deposit at 4%, from back when rates were good, the EU and Irish governments seemed adamant that no bank would be allowed to fail, and before DIRT rates were doubled. I can tell you for free I’ll be getting it the hell out of there when it matures.


#1739

But where to?


#1740

where do you propose to go with your lump sum then?
DIRT isn’t such an issue for me as a non-resident.