Results 1 to 4 of 4

Thread: US dollar carry trade ready to bust

Threaded View

  1. #1
    Join Date
    Aug 2006
    Location
    Canada
    Posts
    10

    Default US dollar carry trade ready to bust

    Mother of all carry trades faces an inevitable bust
    The Globe and Mail, Nov 2, 2009
    http://www.theglobeandmail.com/globe...rticle1347932/


    Let us sum up: traders are borrowing at negative 20 per cent rates to invest on a highly leveraged basis on a mass of risky global assets that are rising in price due to excess liquidity and a massive carry trade. Every investor who plays this risky game looks like a genius – even if they are just riding a huge bubble financed by a large negative cost of borrowing – as the total returns have been in the 50-70 per cent range since March.
    The article predicts a sharp cruel drop in all asset prices, "equities, commodities, emerging market asset classes and credit instruments."

    UPDATE: corrected year date error
    Last edited by North4st; 11-02-09 at 04:40 PM.

Similar Threads

  1. $$ Carry Trade- Jim Willie
    By don in forum News
    Replies: 1
    Last Post: 10-13-09, 11:48 AM
  2. US interest rates -- new carry trade??
    By grapejelly in forum Financial Markets
    Replies: 4
    Last Post: 02-02-08, 02:42 PM
  3. Thank you yen carry trade unwind
    By c1ue in forum Currencies
    Replies: 8
    Last Post: 08-24-07, 02:19 PM
  4. Replies: 11
    Last Post: 03-29-07, 08:33 PM
  5. Unwinding Yen-Carry Trade
    By blazespinnaker in forum News
    Replies: 6
    Last Post: 06-20-06, 07:37 AM

Bookmarks

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Opinions expressed herein are those of the posters, not those of iTulip, Inc., its owners, or management. All material posted on this board becomes the intellectual property of the poster and iTulip, Inc., and may not be reposted in full on another website without the express written permission of iTulip, Inc. By exception, the original registered iTulip member who authored a post may repost his or her own material on other sites. Permission is hereby granted to repost brief excerpts of material from this forum on other websites provided that attribution and a link to the source is included with the reposted material.

Nothing on this website is intended or should be construed as investment advice. It is intended to be used for informational and entertainment purposes only. We reserve the right to make changes, including change in price, content, description, terms, etc. at any time without notice. By using this board you agree that you understand the risks of trading, and are solely responsible for your own investment and trading decisions. Read full legal disclaimer.

Journalists are not permitted to contact iTulip members through this forum's email and personal messaging services without written permission from iTulip, Inc. Requests for permission may be made via Contact Us.

Objectionable posts may be reported to the board administrators via Contact Us.

-->