Wednesday, Aug 22, 2007
Commodity prices may no longer support many of the higher- yielding currencies that benefited from the carry trade, according to Yamamoto.
biznewsdb.com: Citigroup Raises Yen Forecasts as Subprime to Hurt Carry Trades
Aug. 20 (Bloomberg) -- Citigroup Inc. raised its year-end forecasts for the yen by 15 percent as financial market turmoil sparked by losses on U.S. subprime mortgages will reduce appetite for carry trades.
The yen gained against the 16 most-active currencies last week and rose the most against the dollar in more than five months as delinquencies on mortgages to U.S. homeowners with poor credit made banks reluctant to lend. A credit crisis and a sell- off in global equities prompted a reversal of bets on higher- yielding and riskier assets made with borrowed yen, known as carry trades.
Posted by out of my carry @ 01:58 AM (158 views) Add Comment
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