3 ms·
On its own I don't think that the rate increases make the carry trade unprofitable. My guess is the large investors can see the potential of the spiral so have
by morepork 2y ago
On its own I don't think that the rate increases make the carry trade unprofitable. My guess is the large investors can see the potential of the spiral so have started to sell as early as possible before the yen appreciates too much, but in doing so have triggered it. Good for those that already got out, not so much for the rest.
- Ekaros 2y agoAlso possibly looking how aggressive the rate hikes by most central banks have been. So this might not be end so better get out early enough.