Carry Trade

For equity investors, a big risk comes from a shift in global sentiment: sudden volatility in Japan often prompts investors to de-risk across emerging markets such as India even when fundamentals are unchanged.

India is Abrdn’s top Asia bet next year in search for carry trade gains

India's relatively low correlation with the US and attractive bond valuations also make the nation’s notes among the asset manager’s top weightings in emerging markets, said Kenneth Akintewe, head of Asian sovereign debt at Abrdn Plc.

Rupee’s record lows mask currency’s trade-weighted overvaluation

Rupee has underperformed Asian peers this month amid a yen trade unwinding and outflows from stocks. The central bank’s strategy to allow a weaker rupee may be aimed at correcting some REER overvaluation to boost India's trade competitiveness.

EPFR's Cameron Brandt sees money flow returning as investors look to re-invest

The flight to safety had intensified on Friday, August 2, after weak US economic data triggered worries that the US Fed may have been behind the curve in cutting rates and will now likely need to ease monetary policy aggressively to head off a recession.

Yen carry trade may not unwind soon, brace for volatility in stocks, say experts

The global carry trade has unravelled, roiling world stocks this week as Japanese Yen turned volatile after Bank of Japan’s rate hike, and fears that a US Fed may be late in moving to avoid a looming recession.

Yen sheds 1% as carry trade unwinding leaves currency markets on edge

Global carry trades unwinding has also been boosting the Japanese currency and jolting markets around the world.

Flashback: When yen carry trade unwinding worsened the 2008 global market meltdown

As uncertainty and volatility in financial markets surged, investors sought to reduce exposure to risky assets, including those financed through carry trades.

Risk of a US recession real, say experts, second half of 2024 unlikely to be as smooth

The Yen-funded carry trades were popular in emerging markets amid low volatility as investors bet Japanese rates would remain low for longer. But BoJ has raised rates for a second time at its latest meeting, signalling it may not be done yet.

World Street | Apple announces record $100 bn buyback; Coinbase turns black in Q1; Yen carry trades trouble; and more

From Apple's quarterly earnings beat, record $110 billion buyback to Sony Pictures' interest in acquiring Paramount Global, here's a look at recent business developments around the world.

What is carry trade and how does Bank of Japan’s rate hike affect it?

While the carry-trade strategy is popular with forex traders, it is also used by fund managers who deal in equities and commodities, and bonds.

Chart of the Day | The impact of a Fed taper on US real yields and the EM carry trade

If US real rates trend higher ahead of potential tapering, then EM FX could be affected, hurting inflows to emerging markets

Carry trade back in fashion as easy money prevails

There is already evidence of increased carry trade activity since September 18, when the US central bank surprised markets with its decision not to taper its asset purchases, say market watchers

The almighty dollar & fallen rupee

RBS's Drew Brick explains why the dollar is holding up even though US growth isn‘t something to write home about and the impact on India if the Fed goes slow on its money printing operations

Market happy with LTRO 2 but are banks stress-borrowing?

CNBC-TV18 spoke to some analysts on how the markets will react to LTRO 2.0. Check out their comments.