Comments on: Yen Carry Trade is Back! http://www.forexblog.org/2010/03/yen-carry-trade-is-back.html Learn about the world of Forex Sat, 21 Aug 2010 18:28:27 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Yen Trader http://www.forexblog.org/2010/03/yen-carry-trade-is-back.html/comment-page-1#comment-5880 Yen Trader Thu, 15 Apr 2010 18:21:55 +0000 http://www.forexblog.org/?p=2528#comment-5880 I think we will shortly see carry trading on other currencies as people realize developed countries will stay with lower interest rates. I think we will shortly see carry trading on other currencies as people realize developed countries will stay with lower interest rates.

]]> By: Forex Market Inverts as Emerging Markets Soar | Forex Blog http://www.forexblog.org/2010/03/yen-carry-trade-is-back.html/comment-page-1#comment-5824 Forex Market Inverts as Emerging Markets Soar | Forex Blog Wed, 14 Apr 2010 10:13:00 +0000 http://www.forexblog.org/?p=2528#comment-5824 [...] As I pointed out in last Friday’s post (Volatility, Carry, Risk, and the Forex Markets), volatility has been declining in forex markets since peaking after the collapse of Lehman Brothers. In fact, volatility among emerging market currencies has been falling particularly fast, and recently, something amazing happened: “Three-month implied volatility for the seven biggest developing country currencies fell to 10 percent in March compared with 11.4 percent for industrialized nations.” This inversion could rank as one of this year’s most important developments in terms of its impact on forex. The only runner-up that I can think of is Japanese LIBOR falling below American LIBOR. [...] [...] As I pointed out in last Friday’s post (Volatility, Carry, Risk, and the Forex Markets), volatility has been declining in forex markets since peaking after the collapse of Lehman Brothers. In fact, volatility among emerging market currencies has been falling particularly fast, and recently, something amazing happened: “Three-month implied volatility for the seven biggest developing country currencies fell to 10 percent in March compared with 11.4 percent for industrialized nations.” This inversion could rank as one of this year’s most important developments in terms of its impact on forex. The only runner-up that I can think of is Japanese LIBOR falling below American LIBOR. [...]

]]> By: Japanese Yen: Will We See Intervention? | Forex Blog http://www.forexblog.org/2010/03/yen-carry-trade-is-back.html/comment-page-1#comment-5678 Japanese Yen: Will We See Intervention? | Forex Blog Sat, 03 Apr 2010 05:03:29 +0000 http://www.forexblog.org/?p=2528#comment-5678 [...] impact on the exchange rate. It’s possible that an increase in risk appetite and consequent revival in the carry trade is behind the Yen’s weakness, but given that US interest rates remain just as low, it makes [...] [...] impact on the exchange rate. It’s possible that an increase in risk appetite and consequent revival in the carry trade is behind the Yen’s weakness, but given that US interest rates remain just as low, it makes [...]

]]> By: Japanese Yen: Will We See Intervention? | Forex Blog http://www.forexblog.org/2010/03/yen-carry-trade-is-back.html/comment-page-1#comment-5679 Japanese Yen: Will We See Intervention? | Forex Blog Sat, 03 Apr 2010 05:03:29 +0000 http://www.forexblog.org/?p=2528#comment-5679 [...] impact on the exchange rate. It’s possible that an increase in risk appetite and consequent revival in the carry trade is behind the Yen’s weakness, but given that US interest rates remain just as low, it makes [...] [...] impact on the exchange rate. It’s possible that an increase in risk appetite and consequent revival in the carry trade is behind the Yen’s weakness, but given that US interest rates remain just as low, it makes [...]

]]> By: Dukey http://www.forexblog.org/2010/03/yen-carry-trade-is-back.html/comment-page-1#comment-5442 Dukey Sun, 14 Mar 2010 06:26:09 +0000 http://www.forexblog.org/?p=2528#comment-5442 Not sure what the hype is about. 1. Libor is fake. Nobody can actually borrow at libor except some really good names. 2. Negative basis. The dollar yen basis has been very negative for a long time (around -20 in the 1yr), so that means you can borrow USD at libor in the market, swap it to yen and pay yen libor-20. USD is still far cheaper to borrow than yen. Similar effects using the fx swap in the 3m. Not sure what the hype is about.
1. Libor is fake. Nobody can actually borrow at libor except some really good names.
2. Negative basis. The dollar yen basis has been very negative for a long time (around -20 in the 1yr), so that means you can borrow USD at libor in the market, swap it to yen and pay yen libor-20. USD is still far cheaper to borrow than yen. Similar effects using the fx swap in the 3m.

]]> By: Australia Hikes Rates; How about the Carry Trade? | Forex Blog http://www.forexblog.org/2010/03/yen-carry-trade-is-back.html/comment-page-1#comment-5440 Australia Hikes Rates; How about the Carry Trade? | Forex Blog Sun, 14 Mar 2010 05:37:29 +0000 http://www.forexblog.org/?p=2528#comment-5440 [...] Forex « Yen Carry Trade is Back! | Home [...] [...] Forex « Yen Carry Trade is Back! | Home [...]

]]> By: Forex Links for the Weekend - March 13 | Forex Crunch http://www.forexblog.org/2010/03/yen-carry-trade-is-back.html/comment-page-1#comment-5426 Forex Links for the Weekend - March 13 | Forex Crunch Fri, 12 Mar 2010 22:01:24 +0000 http://www.forexblog.org/?p=2528#comment-5426 [...] Adam Kritzer announces the return of the Yen carry trade, following its recent weakness. [...] [...] Adam Kritzer announces the return of the Yen carry trade, following its recent weakness. [...]

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