Carry Trade

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LONDON (Dow Jones)--It pays to sell low-yielding currencies and buy higher-yielding ones, at least in the long run, according to a new academic study released Friday. Currencies watchers have puzzled over the merits of this basic investment ...
May 25, 2012 at 14:59 | Source: Wall Street Journal
The surprise in the currencies over the last month is the strength in the yen, despite the new 1% inflation target by the Bank of Japan. This inflation target should be a reason for a weaker yen, but instead has strengthened over the last month. The yen is ...
May 8, 2012 at 12:20 | Source: Seekingalpha.com
A carry trade is constructed by buying a high-yielding asset and simultaneously shorting a low-yielding asset. Depending on market conditions, this can be a very productive strategy, but when traders get nervous about risk, they tend to exit quickly.
May 25, 2012 at 17:37 | Source: Investorplace.com
Banks may face tougher bonus curbs including a ban on awards stemming from carry-trade profits on cheap European Central Bank loans under proposed changes to a law on Basel capital rules endorsed by European Union lawmakers. Lenders should also ...
May 14, 2012 at 17:07 | Source: Bloomberg
One chart that gives me a bit of pause is NZD/JPY against EUR/USD. The kiwi carry trade has been taken to the woodshed in May, falling 8% month-to-date but the declines have stalled this week. Interestingly, NZD/JPY led the fall in the euro by 4/5 sessions.
May 25, 2012 at 19:10 | Source: FXStreet.com
"With the carry trade no longer in play a big source of demand for dollar puts has been removed from the equation," said Rob Bogucki, head of FX trading, Americas, at Barclays in New York. Though the carry trade would normally be negative for a funding ...
May 23, 2012 at 16:49 | Source: Inside Fidelity
Note how in the past, open interest tended to fall as AUDUSD also fell and rose as AUDUSD rose, in what appears to be a mentality of either buy the carry trade or don’t buy it (as opposed to “sell it”). This has changed with the latest ...
May 14, 2012 at 08:46 | Source: FXStreet.com
Fitch recently on BFA, Bankia’s group parent: Other investments include a repo-funded Spanish government securities portfolio, which is mostly used for carry trade purposes… For which read the LTRO. Obviously there will be no more LTROs (for ...
May 28, 2012 at 06:27 | Source: Financial Times
The broker said it "no longer holds sufficient capital to meet the licensing requirements of the central bank to carry on trade as a stockbroker. "As a result, on Friday evening last the central bank issued a direction to the firm to suspend ...
May 28, 2012 at 08:29 | Source: Reuters UK
Similarities could be drawn with the millions of tons of aluminum held in storage as banks, hedge funds and traders play the financial stock-and-carry trade which has locked physical aluminum away from access by consumers. This has artificially supported ...
May 26, 2012 at 17:35 | Source: Seekingalpha.com