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Gambling - Portland follows in KQ footsteps...
mtaalam
#11 Posted : Thursday, July 30, 2009 7:17:00 AM
Rank: Member

Joined: 11/2/2006
Posts: 519
What is eabl doing in Tz?

ili iwe funzo...
Hi-Lo
#12 Posted : Thursday, July 30, 2009 7:28:00 AM
Rank: Member

Joined: 10/5/2007
Posts: 91
@Kizee...good...but let me put it the way I undertand you...say Sumitomo.jp lends Portland Yen in exchange for USD (forget untradable Ksh). For their magnanimity,Sumitomo (earning in Yen at home so currency swings irrelevant) appears to lend Portland not at the current 2.5%pa but with some mark up say loan is now at 3.5% - they pocket the difference? If this is the case,I vouch for it...damn,why has it taken them 9 years to act on an obvious concept...

Playing the stock market without insider info...is like buying a cow in the moonlight.
VituVingiSana
#13 Posted : Thursday, July 30, 2009 7:38:00 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,371
Location: Nairobi
No-one was daft enuff to bet against the Yen (vs the KShs). EAPCC could have entered into a vanilla swap but the price would have been hefty... but we wish they had tried...

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#14 Posted : Thursday, July 30, 2009 7:42:00 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,371
Location: Nairobi
EAPCC tried to pay the Yen loan off lakini the Japanese said no... they were happy with the income! Perhaps buying JPY & leaving it in a bank wud have been better lakini 20/20... ____ if u knew... u wud b a trader earning millions!

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
kizee
#15 Posted : Thursday, July 30, 2009 7:48:00 AM
Rank: Member

Joined: 1/9/2008
Posts: 537
@ hi-lo

yes...bank x lends eapcc jpy at jpy libor + a spread and takes kes from eapcc at the equivalent 11 year kes rate(perhaps the yield on an 11 year kes paper- a spread)...best bet for eapcc is to do a jpy/kes currency swap...

@ VVS

dude all banks in kenya have approached eapcc to do this hedge but they preffered to bury their heads in the sand...a currency swap would have cost them all of 900 miliion,amortised across the life of the swap...pricey yes..but consider this..theyve lost 5 bn kes on ravaluation to date...
Mtu Biz
#16 Posted : Thursday, July 30, 2009 2:05:00 PM
Rank: Veteran

Joined: 1/16/2007
Posts: 1,320

I have closely considered the arguments put foreword by Hi-Lo and VVS and have concluded thus.


I may be semi literate.

..... the sons of Zeruiah .....
Sola Scriptura


Kaigangio
#17 Posted : Thursday, July 30, 2009 3:36:00 PM
Rank: Elder

Joined: 2/27/2007
Posts: 2,768
why isn't anybody answering mtaalam's question: what is eabl doing in Tz?

NEVER TALK OF A RHINO IF THERE IS NO TREE NEAREBY - ZULU PROVERB
...besides, the presence of a safe alone does not signify that there is money inside...
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