Reported 2 months ago
According to JPMorgan Chase, three-quarters of the global carry trades have been unwound due to a recent selloff, which has erased earlier gains from this year. The firm noted that returns in various carry trade baskets have dropped approximately 10% since May, nullifying profits made since the end of 2022. This downturn follows increased market volatility and concerns over U.S. Federal Reserve rate cuts, along with unexpected interest hikes from the Bank of Japan. The bank cautions that the current carry trade strategy lacks attractive risk-reward potential amid these turbulent conditions.
Source: YAHOO