Home › Forums › Financial Markets/Economics › Why is the Yen gaining strength?
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Eugene.
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October 24, 2008 at 12:02 PM #14282October 24, 2008 at 12:18 PM #292358
Eugene
ParticipantFor the same reason why swiss franc has gained 10% against euro in the last two months. It’s called carry trade unwind.
For the last few years, many big financial institutions had large sums of money in “carry trade” – borrowing money in low-yield currencies (yen, swiss franc) and using it to buy bonds denominated in high-yield currencies (australian dollar, new zealand dollar). This process is being reversed on the massive scale. One theory is that some big hedge funds are liquidating their assets.
October 24, 2008 at 12:18 PM #292681Eugene
ParticipantFor the same reason why swiss franc has gained 10% against euro in the last two months. It’s called carry trade unwind.
For the last few years, many big financial institutions had large sums of money in “carry trade” – borrowing money in low-yield currencies (yen, swiss franc) and using it to buy bonds denominated in high-yield currencies (australian dollar, new zealand dollar). This process is being reversed on the massive scale. One theory is that some big hedge funds are liquidating their assets.
October 24, 2008 at 12:18 PM #292710Eugene
ParticipantFor the same reason why swiss franc has gained 10% against euro in the last two months. It’s called carry trade unwind.
For the last few years, many big financial institutions had large sums of money in “carry trade” – borrowing money in low-yield currencies (yen, swiss franc) and using it to buy bonds denominated in high-yield currencies (australian dollar, new zealand dollar). This process is being reversed on the massive scale. One theory is that some big hedge funds are liquidating their assets.
October 24, 2008 at 12:18 PM #292719Eugene
ParticipantFor the same reason why swiss franc has gained 10% against euro in the last two months. It’s called carry trade unwind.
For the last few years, many big financial institutions had large sums of money in “carry trade” – borrowing money in low-yield currencies (yen, swiss franc) and using it to buy bonds denominated in high-yield currencies (australian dollar, new zealand dollar). This process is being reversed on the massive scale. One theory is that some big hedge funds are liquidating their assets.
October 24, 2008 at 12:18 PM #292757Eugene
ParticipantFor the same reason why swiss franc has gained 10% against euro in the last two months. It’s called carry trade unwind.
For the last few years, many big financial institutions had large sums of money in “carry trade” – borrowing money in low-yield currencies (yen, swiss franc) and using it to buy bonds denominated in high-yield currencies (australian dollar, new zealand dollar). This process is being reversed on the massive scale. One theory is that some big hedge funds are liquidating their assets.
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