Hey folks, because I work at a bank I can get a 20k line of credit at 1% interest (compounded monthly, so it's 1.0046% annualized)
If I quit or am fired it reverts to 4%, so I am mindful of finding fixed income products with short duration, or ones that are properly hedged to interest rates so that if I have to liquidate the position in <1 month, I can do so.
I was looking at LQDH, but I'm Canadian and don't want to take exchange rate risk between the CAD/USD (and pay 15% dividend withholding tax as a foreigner).
XSI/XSC look promising from iShares. Maybe XPF/XTR if I want to take a little more risk.
I welcome any suggestions for other sorts of trades or types of fixed income products I haven't considered.
I am looking at this from the perspective of an arb, so will be satisfied with a 1.1% annualized yield if it has a very high degree of principal protection.
Submitted October 16, 2021 at 11:46PM by PmMeClassicMemes https://ift.tt/3BOtsQc
