Thursday, Aug 30, 2007
Australian, N.Z. Dollars Fall; Bankrupt Fund Deters Carry Trade
bloomberg.com: Despite its small population, Australia is regarded as the hedge fund capital of Asia. ... high-risk investment,
The two favorites for the so-called carry trade have suffered the biggest loss of the 16 most-active currencies in the past month as the U.S. housing crisis sent equity markets lower and eroded demand for riskier investments. Basis Capital Fund Management Ltd. reignited credit concerns after it sought to liquidate the assets of its Basis Yield Alpha Fund.
`Another hedge fund causes a sell-off in Aussie and kiwi,'' said Charles Wiggins, senior dealer at Custom House Global Foreign Exchange in Sydney, referring to the currencies by their nicknames. ``These funds are coming out of the woodwork and you have so many of them, no one is really sure how much exposure to the subprime market is out there.''
Posted by chris @ 02:17 AM (167 views) Add Comment
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