Carry on reaping the profits?
The yen carry trade was all the rage with hedge funds until, earlier this year, suddenly it wasn't. Daniel Murray from EFG Private Bank in London surveys the carry strategy and discusses whether it still has the legs to run
There have been periods in history during which the carry trade has attracted increased attention.
Judging by the proliferation of recent articles about the carry trade, we are currently living through such a period. The generic term 'carry trade' refers to the practice of borrowing in low yielding currencies to invest the proceeds in higher yielding assets denominated in other currencies.
Given their low yielding properties, the two currencies that typically serve as providers of global liquidity
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