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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.



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%


>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.


And shaved both ways in the forex market


3x given the risk involved? Not worth it




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