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| Articles about Chinese Yuan Carry |
| | Chinese Yuan Carry Trade Basket - December 4, 2007 | | 2007-12-03 23:19:39 | | This is an update on the performance of the Chinese Yuan Carry Trade Basket. The experiment was started with a base of $100,000 on March 20, 2007. I have included the performance figures for both of the experiments that I have been running, although they are the same in composition, I have leveraged them differently.
Since [...] | | By: TheFinancialWhiz.Com | | |
| | Chinese Yuan Carry Trade Basket Update - July 20, 2007 | | 2007-12-03 23:03:56 | | This is an update on the performance of the Chinese Yuan Carry Trade Basket. The experiment was started with a base of $100,000 on March 20, 2007. I have included the performance figures for both of the experiments that I have been running, although they are the same in composition, I have leveraged them differently.
Since [...] | | By: TheFinancialWhiz.Com | | |
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| Chinese Yuan Carry Trade Basket Update - July 3, 2007 | | 2007-07-03 23:39:15 | | This is an update on the performance of the Chinese Yuan Carry Trade Basket. The experiment was started with a base of $100,000 on March 20, 2007. I have included the performance figures for both of the experiments that I have been running, although they are the same in composition, I have leveraged them differently.
Since Inception (5 times leveraged basket):
Increase (decrease) in Account Balance: $9,569.53
Increase (decrease) in Unrealized Gains: $18,364.90
Increase (decrease) in Net Asset Value: $27,934.43
Total Portfolio Value: $127,934.43 +27.93%
Since Inception (10 times leveraged basket):
Increase (decrease) in Account Balance: $19,139.05
Increase (decrease) in Unrealized Gains: $36,729.80
Increase (decrease) in Net Asset Value: $55,868.85
Total Portfolio Value: $155,868.85 +55.87%
The Chinese Yuan Carry Trade Basket has been traded for over three months and has given an investor an annualized return of 97.09% and 194.20% respectively. While past performance i | | By: TheFinancialWhiz.Com | | |
| | Chinese Yuan Carry Trade Basket Update - June 7, 2007 | | 2007-06-08 02:10:38 | | Here is an update on the performance of the Chinese Yuan Carry Trade Basket. The experiment was started with a base of $100,000 on March 20, 2007.
Since Inception:
Increase (decrease) in Account Balance: $7,379.42
Increase (decrease) in Unrealized Gains: $12,751.94
Increase (decrease) in Net Asset Value: $20,131.36
Total Portfolio Value: $120,131.36 +20.13%
Although the Chinese Yuan has been gaining considerable strength over the past three months, declining about 1.31%, my belief is that the currency will tread water for now. The quick decline was due to political pressure placed on China to appreciate the Yuan. I have also been running the Chinese Yuan Carry Trade Basket at double the size of the positions as was presented in the original post. The performance of that fund is just two times the above performance figures. Please check back for further updates at a later time. I would appreciate any suggestions on improving the strategy.
| | By: TheFinancialWhiz.Com | | |
| | April 15, 2007 - Chinese Yuan Carry Trade Basket Update | | 2007-04-16 05:32:00 | | Here is an update on the performance of the Chinese Yuan Carry Trade Basket. The experiment was started with a base of $100,000 on March 20, 2007.
Since Inception:
Increase (decrease) in Account Balance: $2,646.52
Increase (decrease) in Unrealized Gains: $9,830.41
Increase (decrease) in Net Asset Value: $12,476.93
Total Portfolio Value: $112,476.93 +12.48%
Since Last Update on April 7, 2007 (One Week):
Increase (decrease) in Account Balance: $791.08
Increase (decrease) in Unrealized Gains:$3,830.41
Increase (decrease) in Net Asset Value: $4,621.49
The basket has been the beneficiary of deteriorating fundamentals of the US Dollar. All the positions in the basket are in profit, except for the the USD/CNY positions, which is our carry trade borrowing currency. Please check back for further updates at a later time. Please post any questions you may have.
| | By: TheFinancialWhiz.Com | | |
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| An Update on the “Chinese Yuan Carry Trade Basket Experiment” | | 2007-04-08 02:29:30 | | The success of this basket so far is exceeding my initial expectations. I have uploaded a spreadsheet of the account transactions, including interest payments, available for download if you wish to inspect the results. While the overall sentiment over the past few weeks (since March 20, 2007) has been bearish the dollar, I still feel that this basket can still continue similar returns in any currency environment. I am a bit disappointed with Oanda for increasing the interest rate at which an investor can borrow at in Chinese Yuan (Previously it was -1%; now it has increased to .5% for a total increase of 1.5%), but we can make due with what we have.
The results after two weeks:
Total Increase (Decrease) in Account Balance: $1,855.44
Total Increase (Decrease) in Unrealized Gains: ~$6,000.00
Total Increase (Decrease) in Net Asset Value: $7,855.44, or a 7.86% Return in Two Weeks
The 7.86% return in two weeks represents an annual return of 204.36% without compounding. Now the timing of the | | By: TheFinancialWhiz.Com | | |
| | An Update on the “Chinese Yuan Carry Trade Basket Experiment” | | 2007-04-08 02:29:30 | | The success of this basket so far is exceeding my initial expectations. I have uploaded a spreadsheet of the account transactions, including interest payments, available for download if you wish to inspect the results. While the overall sentiment over the past few weeks (since March 20, 2007) has been bearish the dollar, I still feel that this basket can still continue similar returns in any currency environment. I am a bit disappointed with Oanda for increasing the interest rate at which an investor can borrow at in Chinese Yuan (Previously it was -1%; now it has increased to .5% for a total increase of 1.5%), but we can make due with what we have.
The results after two weeks:
Total Increase (Decrease) in Account Balance: $1,855.44
Total Increase (Decrease) in Unrealized Gains: ~$6,000.00
Total Increase (Decrease) in Net Asset Value: $7,855.44, or a 7.86% Return in Two Weeks
The 7.86% return in two weeks represents an annual return of 204.36% without compounding. Now the timing of the | | By: TheFinancialWhiz.Com | | |
| | Chinese Yuan Carry Trade Basket - Interest Reinvestment Plan | | 2007-04-01 05:47:28 | | In the previous post entitled “Chinese Yuan Carry Trade Basket Experiment,” I described the basic composition of the basket of currencies in that post and this post I have set out to develop a plan to further take advantage of the interest that is received on the currency positions. I looked to a popular stock investment strategy, entitled DRIP (Dividend Reinvestment Plan), takes the dividends that a company pays on its stock reinvests the dividend into that company’s stock. The DRIP strategy runs off of the idea of compounding, where you are receiving dividends, reinvesting those dividends, and then earning dividends off of your initial investment plus the stock which was purchased in the reinvestment plan.
I am proposing using the idea of the DRIP strategy in combination with the carry trade basket so that the interest that is paid on the basket is reinvested equally over the entire basket, instead of different amounts being invested in the specific currency pair | | By: TheFinancialWhiz.Com | | |
| | The Chinese Yuan Carry Trade Basket Experiment | | 2007-03-24 07:35:07 | | After writing about the viability of a carry trade involving the Chinese Yuan, I got to thinking about how I could develop a basket of currencies to create a diversified carry basket involving a number of major and exotic currency pairs. This basket would seek to profit from the low volatility of the Chinese Yuan and from the large interest rate spread received for holding the USD/CNY.
In my previous post in regard to using the Chinese Yuan as a short, I illustrated the interest rate spreads with ten different currencies; I have taken those ten currencies and equally invested them against the Chinese Yuan.
The basket is currently set up to make approximately 38.05% in interest a year, at the current interest rates. At first glance the strategy may appear to be risky, but this basket is only leveraged at 5 times the balance. The asset allocations for the basket are below with unit values and approximate USD values. As you can see from the $100,000 basket, I am short $500,000 worth | | By: TheFinancialWhiz.Com | | |
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