Buy AUD bond using EURO loan

Good level to sell EURAUD for FX trade.

EURAUD is at the peak of a downtrend channel at 1.4750.

Investors can draw Euro loan to buy AUD. Then use the AUD cash to buy into a AUD bond.

AUD Bond details:

BNP 4.625% 13Mar2027
Price: 101.70
Face value: AUD200k
Yield to maturity: 4.40%
Ccy: AUD
Moody's: Baa2
S&P: BBB+
Fitch: A

Get 4.40% yield from AUD bond and pay 1% interest from EUR loan.

Take note investors will be exposed to both credit and FX risk.