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TheFinancialWhiz.Com|Chinese Yuan Carry Trade Basket - December 4, 2007 Episode
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: $27,338.01
Increase (decrease) in Unrealized Gains: $20,811.01
Increase (decrease) in Net Asset Value: $48,148.52
Total Portfolio Value: $148,148.52 +48.15%
Since Inception (10 times leveraged basket):
Increase (decrease) in Account Balance: $54,675.02
Increase (decrease) in Unrealized Gains: $41,622.02
Increase (decrease) in Net Asset Value: $96,297.04
Total Portfolio Value: $196,297.04 +96.29%
As an update, each currency pair in this basket, minus the USD/CNY pair is showing an unrealized profit. The 10x leveraged currency basket yields about $347.41 in interest per day, representing about 126.8% in interest per year on the initial $100,000 investment. The increase in interest is due to the change in the Oanda interest rate for the USD/CNY pair, which currently pays 8.9% in interest for holding the pair long, which should be more than enough to pay for the risk of holding long a depreciating pair.
At this time, I am contemplating rebalancing the portfolio at the end of the year to bring the initial allocations back in line and taking profits on some positions that have moved very favorably over the past 8 1/2 months.
Sorry for the sparse updates about this portfolio in particular, but in two weeks, I should be able to devote more time to presenting and updating the strategies on this site.
[ Thu Jan 10 1:33:53 CST 2008 ]
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