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Prime Rate
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| posted by Juno Watt 157 days ago |
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You're loaded too? Cut it out smog, we all know of your fabulous wealth.
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| posted by Zebedee 156 days ago |
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Took HK$10.0M cash out today with HSBC over 25yrs, monthly repayments of HK$46,645 with interest rate today @2.85% per annum, property as security obviously. Exchanged the lot into NZD, fixed deposit at HSBC paying 8.25%, meaning INTEREST earnings on that fixed deposit is equivalent of HK$68,750 per month, resulting in HK$22K free beer money a month !
Fun times......
Z
Whatever...
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| The Designer |
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| posted by HKBloke 156 days ago |
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until the FX moves against you...
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| posted by smog 156 days ago |
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Indeed - and for 8.25% I guess you are locked in for a year, which is quite a gamble to take.
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| posted by Zebedee 131 days ago |
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Looking good......
Feb. 26 (Bloomberg) -- The New Zealand dollar rose to the strongest since being allowed to trade freely in 1985 and the
Australian dollar climbed to a three-month high as easing credit concerns prompted investors to buy higher-yielding assets.
The New Zealand and Australian dollars were the second- and fourth-best performers among 16 most-active currencies against the U.S. dollar today as Standard & Poor's said the world's two largest bond insurers retained their AAA credit rating. Traders increased bets the Reserve Bank of Australia will raise interest rates next week, encouraging investors to resume carry trades. ``We've seen a trend back to yield,'' said Meg Browne, a currency strategist at Brown Brothers Harriman & Co. in New York. New Zealand's ``central bank is unlikely to shift to rate cutting, and that's seen money flow back to the kiwi,'' she said, referring to the local dollar by its nickname.
New Zealand's dollar rose as high as 81.52 U.S. cents, the strongest since the government stopped controlling the currency
in March 1985. It bought 81.40 cents at 1:44 p.m. in Wellington from 80.83 cents late in Asia yesterday. The kiwi rose the most versus the yen, climbing to 88.12 yen, the strongest since Dec. 28, before trading at 88.04 yen from 87.16 yen. It reached a two-week high of 1.1382 versus the Australian dollar and a two-month high of 5.83 against the Chinese yuan.
Australia's dollar advanced to 92.94 U.S. cents, the most since Nov. 9, before trading at 92.90 cents from 92.42 cents
late in Asia yesterday. It also rose to 100.46 yen, the strongest since Nov. 15.
New Zealand's 8.25 percent official cash rate is the highest after Iceland's among Aaa rated economies. Australia's central bank raised its key interest rate to an 11-year high of 7 percent this month. High rates make the New Zealand and Australian dollars popular targets for so-called carry trades. In a carry trade, investors get funds in a country with low borrowing costs and invest in another with higher interest rates, earning the spread between the borrowing and lending rate. The
risk is currency market moves erase those profits. Australia's dollar also advanced the most against the yen after S&P said it is unlikely to downgrade MBIA Inc., the world's largest bond insurer. Ambac Financial Group Inc., which ranks second to MBIA, is still being reviewed for a possible downgrade, S&P said.
``I'm a mega Australian-dollar bull,'' said Ray Attrill, director of foreign exchange research at Forecast Ltd. in Sydney.
``Risk appetite is back with a vengeance.'' The Australian dollar may appreciate to 105 yen in the next month and reach parity with the U.S. currency in the next six months, Attrill forecast. Both the New Zealand and Australian dollars are favorites
of the carry trade because traders are betting the Reserve Bank of New Zealand will keep its benchmark rate unchanged at 8.25 percent on March 6 and Australia's central bank will raise its rate a quarter-percentage point to 7.25 percent on March 4.
Japan's benchmark is 0.5 percent, the lowest of major economies. New Zealand's 10-year bonds fell for a second day. The
yield on the 6 percent note maturing in December 2017 rose 5 basis points to 6.52 percent, according to data compiled by
Bloomberg. The price declined 0.378, or NZ$3.78 per NZ$1,000 face amount, to 96.302. A basis point is 0.01 percentage point. The yield on Australia's benchmark 10-year notes gained 3 basis points to 6.47 percent.
Whatever...
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| posted by puyi 131 days ago |
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zebedee how is the above any good for oz and nz ????? those from oz working here end up earning less and less 
darren rudd is a sinophile
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| posted by Zebedee 131 days ago |
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Yeah sorry, being rather selfish here as I meant good for me.....everyone has their own investment strategies though !
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| posted by puyi 131 days ago |
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still dont follow the rational of the tax cuts announcement ..they wont give the tax cuts now as it may push up inflation through extra spending ( ok maybe) but then they keep interest rates so low that it pushes up inflation.....the interest rates should be put up to reduce the inflation rates otherwise by this time next year the tax cut package will push inlfation even further than the projected 7%
darren rudd is a sinophile
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| posted by xpat-Aussie 131 days ago |
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Safest bet around at the moment Zeb... nice move. Whats the terms on the fixed interest deposit? How many years?
Just wondering how quickly you can unwind that trade when needed. The interest rate cuts accross the Tasman will come soon enough I'm sure of that.
"...and once you have tasted flight,
you will walk the earth with your eyes turned skyward,
for there you have been and there you long to return...."
-Leonardo DaVinci
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| posted by Zebedee 125 days ago |
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Thought this was interesting.....been with Premier HSBC for years, but was recently persuaded to open a Priority Banking Account with DBS Bank....look at the difference in rates in key currencies - this from around 10 days ago:
AUD : one month is 6.6%pa (HSBC 4.7%)
NZD : one month is 8.0%pa (HSBC 6.4%)
GBP : one month is 5.0%pa (HSBC 3.4%)
HKD : one month is 2.2%pa (HSBC 0.9%)
So seems be true what many are saying about HSBC these days........
Z
Whatever...
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| posted by xpat-Aussie 125 days ago |
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All I can say is "anyone wanna buy a CDO?"
"...and once you have tasted flight,
you will walk the earth with your eyes turned skyward,
for there you have been and there you long to return...."
-Leonardo DaVinci
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| posted by smog 125 days ago |
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Indeed - for pure Time Deposits HSBC is clearly not the best out there, although the current HSBC rates are a bit higher than you quote (e.g. NZD is 6.73% today, AUD is 5.27%, both for up to NZ/A$100K, higher for larger amounts). If I were looking to put a substantial proportion of my savings in Time Deposits then I would definitely be looking outside HSBC HK.
If you are Premier then you should look at opening a correponding account with HSBC Offshore (Jersey). Their Online Savings account currently offers AER of 5.2524% on GBP for minimum GBP10,000, 3.898% for minimum 20K Euros, 2.8978% for minimum 20K USD. (Note the big restriction is that you don't get any interest at all for any month in which you make any withdrawals, so effectively this is a rolling monthly time deposit which matures on the 1st of each month.)
Your HSBC HK Relationship Manager should be able to arrange an appointment with the HSBC Offshore team here in HK, and then you will get an HSBC Offshore Relationship Manager based here as well.
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| posted by Zebedee 125 days ago |
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How coincidental smog - I actually posted, cause I'm just in the process of closing my Jersey account with HSBC here in HK, as I think the HSBC International Offshore Team here in HK (6/F HSBC Building) are a complete bunch of dim-wits (mild term). My Jersey Relationship Manager (here in HK) was fired by the Big Boss out here with the double-barrell surname, cause of continually making unauthorised transfers between my savings and current account, cause I was a few hundred pounds overdrawn with a GBP10K overdraft facility. He took over management of my account with a big "don't worry, superman is now here...", only for it to happen a further THREE times ! I think the rates you quote are for "new money", I have around GBP250K "existing money" with them, and that seems to attract a measly 3.5% if I recall my last statement.
Whatever...
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| posted by smog 125 days ago (edited 125 days ago) |
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No - the latest "new money" rates were 6/6/7 (US/EU/GBP), though I'm not sure they have an offer at the moment. Interestingly "new money" does seem to include money switched in from HSBC HK so I might do that in future.
I do agree that the Jersey CRMs here don't seem to be very clued in, but I'm not running overdrafts or doing anything other than depositing money in their Online savings account (and occasionally using it as a conduit to move money in and out of other UK investments), so they haven't had much chance to screw anything up yet.
If you have GBP250K in time deposits with them then you are obviously much more fabulously wealthy than I so I hereby bestow that over-used HKExpats title (previously lumped on me, but I've never had more than GBP50K with them) on you.
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| posted by Juno Watt 125 days ago |
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* waves willy obtrusively *
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| Regular Member |
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| posted by smog 125 days ago |
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I think Zebedee has proved conclusively that his is bigger than mine (not that that's hard to do).
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| posted by Lola 125 days ago |
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quote:
Originally posted by Juno Watt
* waves willy obtrusively *
That's not possible is it?
Dancing madly sideways
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| Senior Member |
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| posted by Juno Watt 125 days ago |
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quote:
Originally posted by smog
I've never had more than GBP50K with them
Is that all you've had, smog? How piffling. I spend more than that on lunch.
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| posted by Zebedee 125 days ago |
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All very amusing.....hadn't meant to be quite so willy-wagging, but re-reading, I can see how it prolly appears that way !
But what about Xpat-Aussie, hasn't he got zillions???
Z
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