Carry Trade

The Stage Has Been Set For The Next Financial Crisis

"We are in a multidimensional and fully internationalized carry trade game, folks, which means there is a very serious and tangible risk pool sitting just below the surface across world’s largest insurance companies, pensions funds and banks, the so-called 'mandated' undertakings..."

FX Weekly Preview: Is The USD Correction Done Yet?

After a number of weeks of painfully tight ranges, there is little on the horizon which looks potent enough to warrant a break out.  Has the apathy in global stocks spread into FX? It looks like it, especially when looking at the carry trade. 

Global Markets Shaken By Sudden Equity Sell-Off: Hong Kong Crashes, VIX Surges

Global markets have been shaken by a sudden wave of overnight equity selling as worst case scenario for Spain finally materialized, while a slide in Apple stock has spiked the VIX, which coupled with a plunge in the Hang Seng and several other notable macro events may have finally woken up from their comatose state.

Credit, Crypto, & Kuroda's "Bat-Shit-Crazy Monetary Expansion"

"This is bat-shit-crazy monetary expansion. Forget about arguing whether it is appropriate or needed. It doesn’t matter...What I find amazing is how complacent the markets have become about all of this...There will be consequences, we just don’t know what they are yet. Get your insurance while you can, not when you have to… "

FX Week Ahead: Market In Need Of Brain-Changer, Not Game-Changer

After the FOMC meeting last week, it was (yet) again apparent that the Fed are still keen to maintain a normalisation path designed to not only get rates back to neutral levels, but also build up the policy tool kit again as well as staving off excessive leverage which has boosted stock markets to record highs. 

Stocks Slide After Trump Threatens Government Shutdown Over Wall Funding, Killing NAFTA

US equity futures reversed early gains to slip as much as 0.3% following a fiery Trump campaign rally speech in which he threatened to shutdown government over border wall funding. Additionally, the yen strengthened, while the Mexican peso weakened 0.2 percent as the president also said he might terminate the North American Free Trade Agreement at some point.