Interest Arbitrage - Switching into another currency by buying spot and selling forward, and investing proceeds in order to obtain a higher interest yield. Interest arbitrage can be inward, i.e.
Covered interest arbitrage
Occurs when a portfolio manager invests dollars in an instrument denominated in a foreign currency and hedges the resulting foreign exchange risk by selling the proceeds of the investment forward for dollars.
Accrual The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals , over the period of each deal.
IF Covered Interest rate Parity says that interest rate differential equal?
Covered and uncovered interest arbitrage?
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 See also: Market, Arbitrage, Exchange, Rate, Currency
  
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