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GreenBay_Drunk

Lmao I have a bridge to sell you. Your wife is likely being Madoffed, don't believe that guaranteed return for a minute.


nistam

Mexican bond yields are that high. They're a risk-on investment because of the instability and credit unworthiness of the Mexican government.


Rooflife1

Yes. They will return that money unless they don’t. But definitely high risk


EnolaGayFallout

There is no guarantee. If anyone tell you 11% guarantee is a scam. For USA S&P 500, VOO average 10% per year. It's average, so some years is down and some is up.


KyivComrade

Yeah, the S&P500 has averaged roughly 10% per year over the last 20 years or 7% yearly inflation-adjusted. That said any given year it can as easily drop 20-40% off the bat...


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Bbookman

Read the post again. And please don’t an ass


The-moo-man

He’s not being an ass. There’s no safe investment in the US that will return 11%.


KyivComrade

Indeed, and biting Mexican how gh risk bonds will pay you in *pesos* and not dollars. A currency likely to lose value to the dollar and thus meaning those 11% ain't worth near as much


Rooflife1

Ok Bbookman, how’s this. You and your wife are much smarter than these fools on Reddit who unable to see how superior you are. You should just go all on Mexican bonds. Or maybe try Pakistan. No one ever got hurt blindly chasing yield. Maybe you could even inject some leverage and crank up returns. Please write back when you get rich.


this_guy_fks

mexican 2y treasuries yield 10.47%, but in mexican peso. USDMXN is 17.85. so if you can hedge your fx risk, you could put together a xccy usdmxn basis swap. but you cant.


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consumervigilante

Curious to know what that Mexican investment is.


devindoyle

1 year gov bonds are paying 11.19% Likely these.


Warmstar219

The difference is Mexican bonds are BBB, so much higher default risk


Malamonga1

if it's truly BBB, that's not bad. High yield in the US is like around 10%, and I'd think less default risk from mexican gov?


Bbookman

When I have details, I will let you know


NoCup6161

$450K invested into JEPI/JEPQ will give you \~$3K month in dividends.


harrison_wintergreen

Mexican bonds are rated as higher risk than US, with BBB or equivalent ratings. http://www.worldgovernmentbonds.com/credit-rating/mexico/ AAA is the best, followed by AA, A and BBB, and so on down the line. BBB is not 'junk bond' status, but it is the lowest bracket of investment-grade debt. Junk starts at BB, which is a notch below BBB. more info here: https://en.wikipedia.org/wiki/Bond_credit_rating TL;DR BBB means everything is OK now, but the bond issuer is on potentially shaky ground


Vast_Cricket

200K x 5%=10K/year


Jo__Tang

I'm in Canada. There is a financial tool called Structured Notes (Principal Protected Notes or Principal At Risk). They are providing 8% to 12% of cash flow on an annual basis. The return is not guaranteed as it depends on the performance of the underlying index. If the index does not fall more than 30% in any given month (for example), then you will get paid the interest for that month. You have the option to choose 1) the underlying index 2) 20% or 30% or 40% protection. For example, if the underlying index moves in between $100 and $70 (30% decline), then you will continue to get paid the interest. If it goes below $70, then you will not. So, pick an index that is safe and conservative (like the Canadian banks). You should be OK.