carry trade


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carry trade

n.
1. A financial transaction in which a currency or commodity is borrowed at a favorable interest rate and traded for a higher yielding asset.
2. The business of making such transactions.

carry trade

n
finance a speculative transaction in which a trader buys the currency of a country with a high rate of interest and sells the currency of a country with a low rate of interest
References in periodicals archive ?
Regional Chief Investment Officer Brian Singer says unwinding of the carry trade is imminent
A yen carry trade is a form of the global carry trade which involves borrowing low-yielding currencies to finance investment in higher-yielding instruments in international markets.
The dollar carry trade refers to a set of foreign-exchange transactions chat seem to exploit an economic anomaly and entail substantial risk.
The strengthening of the dollar against a basket of six currencies threatened to affect investment inflows into emerging markets coming through carry trade.
o Middle East Forex trading volumes continue to grow during Q1 2009 o Carry trade remains out of favour with investorso "Big three" currency pairs back in vogue as valuation trading takes precedence
The carry trade has become more difficult and certainly far more dangerous in markets which have become incredibly volatile.
Whitworth has been at Parfetts for four years and in the cash and carry trade for IO years, He worked for John Watson, the former owner of the Halifax depot before it was bought by Parfetts in 2000.
The dollar carry trade is the pool of cheap money that serves as the world's highly liquid source of funds for trading and investment.
By Nicholas Hastings/Dow Jones The carry trade, in which investors borrow the currencies of countries with low-yielding debt and invest in higher-yielding currencies, is changing and the dollar looks set to benefit.
Refusing to predict the performance outlook for the Exchange Fund in 2103, he said : "The unwinding of the yen carry trade may bring a new wave of capital flow to Asia and Hong Kong, but we have not seen this trend at the moment," "The investment environment for 2013 is very uncertain.
A resurgence of the carry trade - borrowing cheap yen to invest in other higher yielding assets - has also been a sore point around the region, but policymakers played down concerns about damaging and distorting impacts on asset prices and currencies.
In a series of papers, we have studied two widely-used currency strategies: carry trade and currency momentum.