Demand for FX-linked structured products slows

“The rate cut could lead to renewed interest in the carry trade because of the widening of the rate differential with other currencies,” says one London-based head of FX structuring. “The problem with this is that as other currencies have cut their rates too, this differential is still not interesting enough to force people back to the carry trade.

Furthermore, the global economic crisis has led to a massive depreciation in emerging market currencies and carry unwinds, which means investor

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: