I'm considering opening HSBC Advance accounts in Brazil, Turkey, India and Indonesia (all investment grade countries - for what it's worth) and buy 12 month CDs or, as HSBC calls them, time deposits. The yields are all very high being over 8%. I could buy short time sovereign bonds through a US broker as well but of course that adds currency risk. And if I want to avoid currency risk with short term bonds it will hurt yields, reducing them by 50% or so. But when opening accounts in these countries themselves and buying 12 month CDs in their local currency at least in theory I do get this 8-11% yield without the currency risk as I can either renew the CD at maturity or cash out in local currency on the local banking account. With cash sitting in local accounts I can either wait for even better interest rates (market crash, inflation, etc) or convert into dollars once the exchange rate is good enough. Doing so SEEMS to be the best of best worlds. But is it?
Other options would be to simply buy sovereign bonds in local currencies through a US broker and hedge the currency risk. But then of course I can't use the money that I use for hedging, limiting my total yield. And the other idea would be to open the same accounts as mentioned but not trade CDs through them but sovereign bonds in the local currency. When reaching maturity they won't be automatically converted to USD but simply paid out in the local currency, again avoiding the currency risk like described before.
Since I haven't used this concept before my questions are as follows:
A) Which of my investment options seems the best?
B) Am I missing any important risks or costs?
C) Does anyone have experience with investing in this way?
D) Is there anyone out there who has HSBC deposit accounts in the countries mentioned and, if so, what are your findings until now?
Any responses would be highly appreciated.