Financial
Buying Icelandic Bonds?
In surfing my about the web I happened upon a thread on Fatwallet Finance that greatly interested me regarding a CD denominated in Icelandic Krona. What's so interesting about it? It is a 3 month CD that is paying 13.38% APY. Now in this day and age of 6% mortgages in the United States this is a crazy high and fairly safe return. This even beats the historical average for the stock market!

So why didn't I immediately open an account?

1. Minimum investment of $10,000.
2. Currency risk. (This just means that the Krona floats against the dollar and you could gain or lose money based on what happens to the exchange rate).
3. Conversion fees. A possible deal breaker. (The cost to transfer in and out of the account.)
Hear is what Everbank has to say:

If you request funds in this account to be denominated in a currency other than the currency sent to us to fund the account, EverBank will convert your funds using a then current conversion rate set by EverBank. Your currency conversion rate will be within 1% of the wholesale spot price EverBank pays for your currency. Exceptions may occur when a specific conversion rate is agreed upon between you and EverBank.

The above made me wonder if I could directly purchase treasury bonds. After some research on the web it looks like the unfortunate answer is no.

The final possibility is to find a mutual fund or ETF that invests in Icelandic bonds. I haven't gone down this road yet, but a quick search of Fidelity didn't show anything particular.

If only things had worked out bit better. After all, who doesn't want to invest at a guaranteed return of 13%!

Possibly useful links:
Everbank
Fatwallet thread
Iceland Bonds