covered interest arbitrage

简明释义

避险的利息裁定

英英释义

例句

1.Many hedge funds employ covered interest arbitrage as a part of their investment strategy to enhance returns.

许多对冲基金将套期利息套利作为其投资策略的一部分，以提高回报。

2.Investors often engage in covered interest arbitrage to take advantage of interest rate differentials between two countries.

投资者通常参与套期利息套利以利用两个国家之间的利率差异。

3.The strategy of covered interest arbitrage involves borrowing in a currency with a lower interest rate and investing in a currency with a higher interest rate.

套期利息套利的策略涉及在低利率货币中借款，并在高利率货币中投资。

4.To minimize risk, traders use covered interest arbitrage by locking in exchange rates through forward contracts.

为了降低风险，交易者通过远期合约锁定汇率来使用套期利息套利。

5.When the forward exchange rate does not align with interest rate differentials, covered interest arbitrage opportunities arise.

当远期汇率与利率差异不一致时，会出现套期利息套利机会。

作文

Covered interest arbitrage is a financial strategy that allows investors to take advantage of the differences in interest rates between two countries while eliminating exchange rate risk. This practice involves borrowing money in a country with a lower interest rate, converting it into another currency, and then investing it in a country with a higher interest rate. The key to this strategy is the use of forward contracts to lock in the exchange rate, thereby 'covering' the investor from potential losses due to fluctuations in currency values. To illustrate how covered interest arbitrage works, let's consider an example involving two countries: the United States and Japan. Suppose the interest rate in the United States is 2%, while the interest rate in Japan is 5%. An investor could borrow $1,000 in the United States at the lower interest rate of 2%. After borrowing, the investor converts the $1,000 into Japanese yen using the current exchange rate.Next, the investor would invest the yen in a Japanese bank or financial institution where they can earn the 5% interest rate. Simultaneously, the investor enters into a forward contract to convert the yen back to dollars at a predetermined exchange rate when the investment matures. This forward contract is crucial because it protects the investor from any adverse movements in the exchange rate during the investment period.When the investment matures, the investor receives the principal plus interest from the Japanese bank. Afterward, they use the forward contract to convert the yen back to dollars at the agreed-upon rate. By doing so, the investor effectively eliminates the risk associated with currency fluctuations, allowing them to earn a risk-free profit based on the difference in interest rates between the two countries. The concept of covered interest arbitrage is grounded in the principle of interest rate parity, which states that the difference in interest rates between two countries should be equal to the expected change in exchange rates between their currencies. If there are discrepancies, arbitrage opportunities arise, and investors will act to exploit these differences until equilibrium is restored, thus ensuring that the market remains efficient.However, it is essential to note that covered interest arbitrage is not without its challenges. Transaction costs, taxes, and the availability of forward contracts can impact the effectiveness of this strategy. Additionally, while the risks associated with exchange rate fluctuations are mitigated through forward contracts, other risks such as credit risk and liquidity risk may still exist.In conclusion, covered interest arbitrage is a valuable tool for investors seeking to maximize returns by capitalizing on interest rate differentials across borders. By understanding how this strategy works and the principles behind it, investors can make informed decisions that enhance their investment portfolios while minimizing risk. As global financial markets continue to evolve, the importance of mastering strategies like covered interest arbitrage cannot be overstated, as they offer opportunities for profit in an increasingly interconnected world.

有保障的利率套利是一种金融策略，允许投资者利用两个国家之间利率差异，同时消除汇率风险。这种做法涉及在低利率国家借款，将其转换为另一种货币，然后在高利率国家进行投资。该策略的关键是使用远期合同来锁定汇率，从而“覆盖”投资者因货币价值波动而可能遭受的损失。为了说明有保障的利率套利如何运作，我们以美国和日本为例。假设美国的利率为2%，而日本的利率为5%。投资者可以在美国以较低的2%利率借入1000美元。在借款后，投资者使用当前汇率将1000美元转换为日元。接下来，投资者将在日本的银行或金融机构中投资日元，以赚取5%的利率。同时，投资者签订一份远期合同，在投资到期时以预定的汇率将日元转换回美元。这个远期合同至关重要，因为它保护投资者免受投资期间汇率不利变动的影响。当投资到期时，投资者从日本银行收到本金和利息。随后，他们利用远期合同按照约定的汇率将日元转换回美元。通过这样做，投资者有效地消除了与货币波动相关的风险，使他们能够基于两个国家之间的利率差异获得无风险利润。有保障的利率套利的概念建立在利率平价原则的基础上，该原则指出两个国家之间的利率差异应等于其货币之间预计的汇率变化。如果存在差异，就会出现套利机会，投资者会采取行动利用这些差异，直到恢复均衡，从而确保市场保持有效。然而，值得注意的是，有保障的利率套利并非没有挑战。交易成本、税收以及远期合同的可用性可能会影响该策略的有效性。此外，尽管通过远期合同减轻了与汇率波动相关的风险，但其他风险，例如信用风险和流动性风险仍然存在。总之，有保障的利率套利是投资者寻求通过利用跨国利率差异最大化回报的宝贵工具。通过理解这一策略的运作方式及其背后的原则，投资者可以做出明智的决策，增强其投资组合，同时降低风险。随着全球金融市场的不断发展，掌握像有保障的利率套利这样的策略的重要性不言而喻，因为它们为在日益互联的世界中获得利润提供了机会。