Carry Trades, Explained

03/09/2024 16 min
Carry Trades, Explained

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Episode Synopsis

They caused global markets to seize up – and raised serious questions about just how much money was at stake. No, we’re not talking about Nvidia’s earnings. Or the US jobs report. We’re talking about carry trades – an obscure part of international markets that’s suddenly less obscure. On today’s Big Take Asia podcast, the Bloomberg Explains series continues with Bloomberg Opinion columnist Shuli Ren. She tells hosts K. Oanh Ha and David Gura about how the yen carry trade became so popular with big banks to small-time investors, what went wrong during the August markets rout and how soup dumplings are key to understanding why carry trades shouldn’t work … but do. : How Big Is the Yen Carry Trade, Really?Further listening: Odd Lots Podcast - BloombergWatch, from Bloomberg Originals: Why Japan’s Yen is So VolatileSee omnystudio.com/listener for privacy information.