hey guys i'm considering buying a property in HK soon but i'm really paranoid that u can't fix u're rates like u can in oz and i'm really worried that the rates will go up especially since HK currency is pegged to the US... so i'm racking my brains trying to figure if there is some way i can hedge itmyself...
i'm thinking of shorting a US treasury with the notional size of the bill the same as the size of my mortgage. hence if rates go up the bond should decrease by the same amount as the excess interest i have to pay.... do u think it would work? i'm thinking of shorting the bonds using cfds that u can get at www.igmarkets.com.au
of course i'm assuming the peg for the USD to the HKD will remain for some time.
can someone pick a hole in what i'm doing and why it won't work? thx.