Nibbling on Some Kiwi Debt

By Roger Nusbaum | August 12, 2008 | 11:49 AM | 0 Comments

Short post; I have to get down to Phoenix (about two hours away) for a CNBC segment scheduled for 30 minutes before the close.

A few months ago on my blog I talked about possibly buying some New Zealand sovereign debt if NZD/USD went below 0.70. Back then the NZD/USD was around 0.76 and a lower kiwi made sense for several reasons inherent to the current state of affairs in New Zealand. 

I have exposure to antipodean debt with Australia already so I have decided to not add to the exposure with what looks like open ended rate cuts on the way.

For anyone with no exposure, both Australia and New Zealand offer higher yields at a much cheaper price at a time where the currencies have panicked  lower with the type of move that is typically not sustainable.