Carry Trade Pits Value Dislocations In Emerging Markets Against Low Rate Developed MarketsMark Melin
The carry trade – borrowing in a low interest rate sovereign region and investing in a high interest rate regime – has been a stable of many hedge fund portfolios. A November 7 Deutsche Bank report titled “What drives excess returns on FX carry?” point to two factors that point to two factors that led to outperformance as a rotation out of developed markets and into emerging markets “has been the main driver of asset pricing this year,” a move that favors emerging market fixed income.
This content is exclusively for paying members.
If you are subscribed and having an account error please clear cache and cookies if that does not work email firstname.lastname@example.org or click Chat.