An Icelandic Multicurrency Sandwich

by | Feb 28, 2001 | Archives

You can borrow yen and deposit the loan at more than 10.5% in Iceland.

See why this makes sense below.

A reader recently asked me if an Icelandic multicurrency Sandwich made sense and I referred him to Jyske Bank (one of Scandinavia’s largest). Here is what he learned and wrote.

“Dear Gary,

I spoke to Jyske as you suggested and this is their feedback on the Icelandic Currency. I’m sandwiching these bonds against the yen with 100% leverage.”

Research on this Opportunity

There is an Adobe Acrobat file available from Jyske Bank on this opportunity.