07-18-2005, 01:32 AM
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 Re: Fund indexed to FED Bonds but in euros. Pedro wrote: - quote - > I would like to know if there is any fund with a rate close to the FED
Sorry, such a fund cannot exist, because if you could borrow or lend at> rate. > So it must be a zero risk fund indexed to the FED bonds rate. But > instead of being in US dolars it should be in euros. > Anyone knows of such financial tool ??? U.S. interest rates without exposure to the U.S. dollar, there would be an arbitrage. For example, with Fed Funds currently at 3.25% and the ECB rate at 2%, a bank would borrow in Euros at 2%, invest in your hypothetical fund at a 3.25% rate, and make a riskless profit. |
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#-1
07-17-2005, 11:20 PM
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| Fund indexed to FED Bonds but in euros. I would like to know if there is any fund with a rate close to the FED rate. So it must be a zero risk fund indexed to the FED bonds rate. But instead of being in US dolars it should be in euros. Anyone knows of such financial tool ??? Regards, Pedro |
| Tags |
| bonds, euros, fed, fund, indexed |
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