Originally Posted by FlyingScot
If anyone can come up with a zero risk and good return investment (...) I'm all ears (along with everyone else).
Ha ha ha Scot!
I am all ears too.
The only zero risk thing are US or Germany
short term govt papers (say 1 yr.). And this applies only as long as one remembers this is a trick of the trade
and zero risk simply stands for lowest available risk (the risk is still there, but no investment is found less risky).
It is often that lay men
think risk is a risk while in finance it is nothing but a measure of our investment volatility, often via the proxy of price
So, in other words, the only 'zero risk' that could exist would be a hedge of sorts - and only one on the same base instrument. And such thing would be immediately arbitraged out by any liquid and well informed market.
So, this is my recipe for you:
Issue EUR bonds in Germany
(at 1%), the collected money invest in same maturity EUR bonds in Greece
(at 7%). Now, if you are German government
and assuming you can control Greek collapse, you got your zero risk, good return thing.
Oh my gods, I am this smart ;-)