carry trade

“The Great Unwind” in the Aussie Yen Spread

 

This was the most violent carry trade unwind I have ever witnessed.

Chinese Yuan Carry Trade Currency Basket – Nine Months Later and 43% Greater

Back on March 20, 2007, TheFinancialWhiz.Com started an experiment of combining a basket of nine currencies versus the Chinese Yuan. The goal of the basket was to generate positive interest payments from the long currency holdings, with a secondary goal of generating capital appreciation. The results: 43% return and a Sharpe Ratio of 1.37.

Stock Symbol: FXE CURRENCYSHARES EU Stock Price: $157.02 Todays Change: -1.79 (-1.13%)