CNBC analysts were discussing yesterday another disappointing a year for the FX carry trade. In the case 2015, the currency carry trade, which attempts to profit from global differences among interest rates, saw its worst year since the 2008 financial crisis, according to Deutsche Bank. In 2015, traditional carry trades got hit, as higher interest rate…
Read moreNew white paper shows how new RavenPack News Analytics can be used to improve the risk adjusted returns for G10 FX carry and reduce drawdowns.
Read moreFederal Reserve’s tapering will be the theme to spark volatility and volume growth in 2014 Most participants in the FX markets will mark 2013 as the year when the carry trade has returned. And the funding currency of choice is the same as before 2008 – the Japanese Yen. Ultra low interest rates coupled with…
Read moreHas global fiscal stimulus killed the 'carry trade'? Interesting article posted on Bloomberg (with thanks to CMAP's commentary section for bringing it to our attention), positing that central banks' stimulus has effectively killed the 'carry trade' in FX, whereby lower yielding currencies are borrowed to invest in higher yielding ones -- which normally leading to…
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