If I properly execute a European box spread in order to borrow money, I can get a <4.3% interest rate (provides me with roughly 80k now with 100k due in Dec 2029). This part is pretty certain and doesn't have much risk since there's no early assignment.
With current CD rates at 5.5%+, what's stopping me from doing the above then just investing in a CD and collecting the spread? I must be missing something. Seems too easy to follow the simple borrow at a low rate and lend/invest at a higher rate.
Submitted December 25, 2023 at 01:12AM by Google_-_Ultron https://ift.tt/ovew62l
