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This is old, but I don't see it in this thread.
GMT Research suggests that Wilmar borrowed money to engage in USD/RMB carry trade.
https://gmtresearch.com/videos/video-qa-curious-assets/ (at 5:19)
They say:
- USD 8bn restricted cash, largest amt they have seen for any company.
- This gets a 5% yield. In a ZIRP environment.
- US 24bn short term debt, at ~ 2.5%.
GMT was concerned they are vulnerable to widening interest rate differential.
If true, I'm wondering what effect a further RMB devaluation would have.
GMT Research suggests that Wilmar borrowed money to engage in USD/RMB carry trade.
https://gmtresearch.com/videos/video-qa-curious-assets/ (at 5:19)
They say:
- USD 8bn restricted cash, largest amt they have seen for any company.
- This gets a 5% yield. In a ZIRP environment.
- US 24bn short term debt, at ~ 2.5%.
GMT was concerned they are vulnerable to widening interest rate differential.
If true, I'm wondering what effect a further RMB devaluation would have.
I wait until there is money lying in the corner, and all I have to do is go over there and pick it up.
Jim Rogers
Jim Rogers