Tag: carry tradeSort
In early November Nouriel Roubini wrote in the Financial Times that the Mother of all carry trades faces an inevitable bust. Roubini states the rise in risky asset values: equities, high yield bonds, etc. has been driven by the carry trade with the U.S. Dollar. The fundamental data may not support his conclusion though.
Mounting Strains In Global Financial Markets Threaten To Topple Government's Efforts To Revive Sentiment
Economic and financial conditions are worsening. And, despite the global effort to stabilize markets and revive growth, it is only a matter time before feeble optimism gives way to fear once again. DailyFX provides the latest in forex trading and currency trading news, including market/economic news, forex alerts, technical and fundamental analysis, strategy pieces and analyst picks.
Investors see the rest of the world collapsing, and the yen & SF franc are no longer a safe haven.The Swiss franc has suffered from a weakening Swiss financial system and threats of intervention by the central bank to push the currency lower against the euro. More so one needs to be aware the obligations of the top three Swiss banks have debts greater than 8X the GDP of Switzerland.
We all know the story of the recent market activity, but if you're inclined to review the gory details and, perhaps, enhance your historical perspective along the way, the Bank for International Settlements has just the report you're looking for. Yesterday's release of the December 2008 installment of the BIS Quarterly Review is a sobering publication, to be sure, given the events of late.
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.