Raising External Commercial Borrowing, but how ?

neerajchauhan

Neeraj K Chauhan
As I see different nations have different interest regimes depending upon their economy and several other factors..The interesting part is can we capitalise or arbitrage on this ???

e.g. Japan's interest rates of 0.5% p.a. and say India has 10% p.a. So if we raise funds from Japan at 0.5% and park or invest at 10 % in India. Even after paying LIBOR plus swap and hedge premium of yen and rupee, I think it should be profitable.


:SugarwareZ-216:
 
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