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Unwinding of yen ‘carry trade’ still threatens markets, say analysts

Financial Times LogoFinancial Times13h ago

Unwinding of yen ‘carry trade’ still threatens markets, say analysts - Financial Times

Quick Summary:

Some analysts and traders suspect that the majority of the more speculative bets for which the carry trade was used have now been liquidated.

Nicholas Smith, chief Japan strategist at CLSA Securities, said that “estimates for the size of the yen carry trade vary, but most suggest several trillion US dollars.

By some estimates, the yen carry trade has grown to become one of the biggest ever iterations of the bet, with the cheap fundraising in yen pouring into everything from emerging market currencies such as the Mexican Peso to Taiwanese equities, real estate and US tech stocks.


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Article Details

Author / Journalist: David Keohane

Category: MarketsFinanceInvesting

Markets:

Topics:

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-08-07 @ 12:00:17 (13 hours ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 850 words

Reading Time: 5 minutes read

Sentences: 26 lines

Sentence Length: 33 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 21969730

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About Financial Times

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Main Topics: MarketsFinanceInvesting

Official Website: ft.com

Update Frequency: 16 posts per day

Year Established: 1888

Headquarters: United States

News Last Updated: 10 hours ago

Coverage Areas: United States

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Publication Timezone: GMT -5:00

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Publisher ID: #3

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