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Re: China dollar peg removed. What now?
Old 07-24-2005, 12:13 PM   #21
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Re: China dollar peg removed. What now?

lazyday--

I've owned this cef in the past: FAX It's a SE Asia bond fund w/leverage. To my understanding, the countries near China prefer to keep their currencies pegged to the yuan. Here's another site to poke around in, lots of interesting int'l bond funds.

http://www.etfconnect.com/default.asp?etfcs=noshow

--Greg
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Re: China dollar peg removed. What now?
Old 07-24-2005, 01:12 PM   #22
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Re: China dollar peg removed. What now?

Greg, thanks for the idea, though your link shows about half the fund is in Australia, and expense ratio of 1.19%.
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Re: China dollar peg removed. What now?
Old 07-24-2005, 04:21 PM   #23
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Re: China dollar peg removed. What now?

Quote:
Originally Posted by lazyday
Greg, thanks for the idea, though your link shows about half the fund is in Australia, and expense ratio of 1.19%.
lazyday--the etfconnect site allows you to do a variety of searches for funds, by country, by type (bonds or equities), etfs, etc. Plug in a some different sets of criteria and see if you find something that approaches what you want. The fees are almost always high of cefs. Good Luck.

--Greg
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Re: China dollar peg removed. What now?
Old 07-25-2005, 12:06 PM   #24
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Re: China dollar peg removed. What now?

GIM is more resonable at 0.7% e/r and no currency hedging. Both developed and emerging.
TEI is resonably priced considered it is in the harder to get to emerging debt.
I currently hold some GIM as well as PFUIX and PEBIX. Have held TEI before.
Cheers!
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Re: China dollar peg removed. What now?
Old 07-25-2005, 12:39 PM   #25
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Re: China dollar peg removed. What now?

Ben's PEBIX looks interesting if I were to start buying EM debt.

Right now, I'm not too interested in bonds, except I might consider a currency play specifically on the Yuan if something were available without much risk other than currency risk. I don't think there is tho.

If the economists are right about the Yuan being 40% undervalued, it could make an interesting holding, for someone willing to sit on it for some years. Maybe you'd be pleasantly surprised with a quick profit, or maybe 20% over 2-3 years, or not, but seems like could be good risk for someone patient.
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Re: China dollar peg removed. What now?
Old 07-26-2005, 09:40 AM   #26
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Re: China dollar peg removed. What now?

Strike it rich, trading currencies!

Quote:
Originally Posted by Wall St Journal
Of its 70,000 customers, the firm estimates nearly half of them signed up this year. Customers need a minimum of $2,000 to open an account and can borrow up to 100 times the value of the account, though Mr. Niv says 15 to 20 times leverage is more typical....

As Mr. Niv sees it, foreign-exchange trading is less risky than investing in stocks because currencies tend to move in multiyear cycles, making it easier to spot a trend. "You're trading oil tankers here," he says, "not speed boats."

Yet many of his clients like to race. Vitaly Trushkov, a 24-year-old engineer in Ferndale, Wash., opened a $3,000 account, borrowed three time that much, and saw a 25% gain in two months of trading. "I'd call myself a short-term trader," he says of his winnings.

Still, Mr. Trushkov seems ready to make a deeper commitment to currency trading. "I'm probably going to do this full time," he says. "That way I'll have time at home with my wife and daughter."
http://online.wsj.com/public/article...060726,00.html
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Re: China dollar peg removed. What now?
Old 07-26-2005, 09:50 AM   #27
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Re: China dollar peg removed. What now?

Trushkov will likely end up where the vast majority of the dot com daytraders ended up: back at work, a lot poorer than they started.
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Re: China dollar peg removed. What now?
Old 07-26-2005, 10:52 AM   #28
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Re: China dollar peg removed. What now?

A few words from Jim Rogers on Yuan: http://www.investmentu.com/IUEL/2005/20050721.html

Quote:
Originally Posted by Jim Rogers
So China is taking very small steps toward making this a completely convertible currency. It will happen by 2007, under the terms of the World Trade contract they have Ė you know, they joined the World Trade Organization. And theyíve got the Olympics in 2008. So certainly by 2008, China is not going to be sitting around here with a blocked currency anymore....

I know that hundreds of billions of dollars are being poured into China to take advantage of the rise in the renminbi. First of all, whenever something like that happens, it wouldnít surprise me if this renminbi didnít go down for awhile, because all those people who poured hundreds of billions into China to speculate have got to get it out.

But whether it goes up or down in the beginning, I donít care. Iím going to be buying more of it myself. Because longer term, the renminbiís going to be a big currency, a great currency.

The consequences, again, there have been hundreds of billions of dollars of speculation on the renminbi, and that always worries me. So I know there are going to be some surprises. I just wish I were smart enough to know exactly what the consequences will be and what the timing will be.

Iím not one of the people pouring money into China right now to speculate on the renmimbi, thatís for sure.
Funny how easy it would be to badly quote him, by picking only some of the above sentences.
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Re: China dollar peg removed. What now?
Old 07-26-2005, 01:42 PM   #29
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Re: China dollar peg removed. What now?

This should clear up everything.* From the People's Bank of China.

http://www.pbc.gov.cn/english//detai...ol=6400&ID=547

"Solemn Statement by the Spokesman of the People's Bank of China



The reform of the RMB exchange rate regime has triggered widespread coverage and considerable support from the media both at home and abroad. However, certain foreign media has misled the public and even wrongly speculated that the revaluation of RMB by 2 percent was only the first step in a series of adjustment, which could "lead to expectations for further RMB revaluation by the People's Bank of China in the non-distant future".



To promote correct understanding of the RMB exchange rate regime reform, the People's Bank of China is hereby making solemn statements as follows:



First, a revaluation of RMB by 2 percent, effective in the beginning of the exchange rate regime reform, does not in the least imply an initial move which warrants further actions in the future.



Second, the 2 percent revaluation of RMB was calculated and conducted to maintain the RMB exchange rate basically stable at an adaptive and equilibrium level. Such an adjustment was determined considering the size of surplus and the needs in restructuring of China's foreign trade while at the same time taking into account the resilience of the domestic enterprises to absorb the risks, basically satisfying the needs to achieve a broad trade balance in goods and services.



Third, the reform of the RMB exchange rate regime must be proceeded in a gradual way. "Gradualism" is the principle applied in the reform of the RMB exchange rate regime, rather than in the adjustment of the RMB exchange rate. The reform is focused not on the quantitative adjustment of the RMB exchange rate but on the improvement of the RMB exchange rate regime.



The People's Bank of China welcomes the attention and support on the reform of the RMB exchange rate regime from all walks of life, both at home and abroad, and is looking forward to responsible and objective coverage of the reform based on correct understandings. "



Submit Date:2005-7-26 16:29:00

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