Post Tagged with: "carry trade"
Bill Gross on Risk Seeking Return and Safe Carry
Bill Gross is out with his monthly commentary. Because his points are central to the discussion of policy and markets right now, I am going to write this weekly newsletter commentary outside the paywall. The major question is about how to invest in a world that levers much more slowly in total, and can delever sharply in selective sectors and countries. Gross has some answers and I have some comments on the macro backdrop
Connect the Carry Trades
So, our friends, a few questions. Which rates are the result of financial repression, capital flows, and/or stellar credit risk? And what is the best carry trade, assuming you can borrow close to the sovereign
Mrs Watanabe has amassed a large short yen position
Something interesting is being played out. Margin traders–the famed Mrs Watanabe– at the Tokyo Futures Exchange–have amassed a large short yen position. There are about 900k short yen contracts as of today and about 364k are short yen against the dollar. This is the largest short yen long dollar positions since
Financing world trade – Buy the dollar
Andy Lees argues insufficient dollars are getting into the system from the US current account deficit to finance the growth in global trade, so the stock of these international dollars is falling relative to the value of world trade. He says this means the dollars are either getting in through other means to finance global trade, or as appears to be happening over the last couple of months, global trade will have to slow
The Carry Trade and Fed Swap Lines
The Fed is stuck at permanent zero and that means the carry trade is on. If we did have another panic, those swap lines would be handy because the Fed would again become the global lender of last resort
Forexblog – Q&A on Macroeonomics, FX and all the Rest of It
I was recently contacted by Adam Kritzer who is a lead editor on Forexblog which is arguably the best one stop resource for people interested in FX (trading) and the importance of foreign exchange in general. He asked me whether I would answer some questions about macroeconomics and FX markets. You can see his questions
The Euro As A Carry Trade Funder … Surprising?
Nothing is so bad, that it isn’t good for something. So goes an old adage in my home country (and I would imagine elsewhere too) and perhaps if hard-burdened Eurozone policy makers and investors are finding it hard to find any kind of (positive) silver lining in the current debacle, they may just want to
Links: 2010-05-15 Gordon Gekko at Cannes and the carry trade unwind
Subscribe to Our News Feed If you would like to receive our links in real-time please follow me at @edwardnh. Must Reads Gordon Gekko is back at Cannes and he’s brought the 1980s with him | Film | The Guardian FT Alphaville – Gwen Robinson – The great Aussie-yen unwind Links Slump hits Mexican resort
Liquidity Giveth, Liquidity Taketh – The IMF On International Capital Flows
To be an economist these days is a rare privilege and especially; it is a privilege to be a blogging economist since there is just so much good material to write about at the moment. On the one hand, there is the unfolding unravelling of Goldman Sachs (loads of material out there already, but just
Quantitative easing is not the cure to what ails Europe
"This is definitely a threat on the horizon," said Blaise Ganguin, the agency’s European credit chief. Some 75 companies large enough to be rated face likely default in 2010 as the slow-burn effects of the crisis hit home. The default rate peaked near 13pc this year, the highest since S&P began to collect data. This
On the sovereign debt crisis and the debt servicing cost mentality
As we discuss sovereign debt levels, currencies and competitiveness, it bears remembering that interest rates are at the heart of many of these debates. To the degree debt service costs are the only measure used to determine how high a debt burden is, you are going to run into problems with low interest rates. The lower the rate of interest, the higher the debt load a given repayment schedule can service. Focussing only on debt service costs is clearly bubble mentality that led to huge credit growth in the household sector in the past decade. If this same mentality creeps into the debate on public sector debt burdens, expect the same results
Marc Faber: "I don’t think that you’ll see gold below $1,000 per ounce probably ever"
Marc Faber is in a bullish mindset, particularly on gold. In a wide-ranging interview with CNBC TV-18 in India, Faber talked about where he sees markets headed and why he thinks gold will never drop below $1,000 an ounce. Private sector contracting while public sector expanding This is the frame that Marc Faber puts on