China Is Hunting for Foreign Buyers for Its Sovereign Debt

Re:China Is Hunting for Foreign Buyers for Its Sovereign Debt by projectramo on Thursday January 03, 2019 @06:55PM (#18820620)

They might do it for 3x the return:

"China’s government bonds were among the world’s best performers in 2018, returning 7.7 percent, while U.S. Treasuries earned 0.8 percent, ICE Bank of America Merrill Lynch data show. That gain is in yuan terms, however, and the yuan dropped 5.4 percent against the U.S. dollar."

So 7.7 - 5.4 = 2.3%

which is almost 3x 0.8% return on US Treasuries.

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Re:China Is Hunting for Foreign Buyers for Its Sovereign Debt by pkaye on Thursday January 03, 2019 @07:52PM (#18821011)

That is not how you would do that math though. You have to multiply the percentages. (1+0.077)*(1-0.054)=1.0188 => 1.88%

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Re:China Is Hunting for Foreign Buyers for Its Sovereign Debt by anonymfus on Thursday January 03, 2019 @07:04PM (#18820696)

>So 7.7 - 5.4 = 2.3%

Seriously? 0.946 * 1.077 = 1.018842

So about 1.9% which is about 2.4x 0.8% return on US Treasuries.

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Re:China Is Hunting for Foreign Buyers for Its Sovereign Debt by nly on Thursday January 03, 2019 @10:31PM (#18821749)

And shaved both ways in the forex market

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Re:China Is Hunting for Foreign Buyers for Its Sovereign Debt by seppin on Thursday January 03, 2019 @07:04PM (#18820698)

3x given the risk involved? Not worth it

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