🧵 1. Strategists caution that the unwinding of 'carry trades' may continue. Investors warned against assuming the process is complete. #finance
🧵 1. Strategists caution that the unwinding of 'carry trades' may continue. Investors warned against assuming the process is complete. #finance
🧵 2. Carry trades involve borrowing in low-interest currencies like yen. Recent BOJ actions have fueled swift unraveling, impacting global markets.
🧵 3. Richard Kelly of TD Securities believes there's more to come. Uncertainty looms around the scale of the yen carry trade, estimated as high as $4 trillion.
🧵 4. TS Lombard analysts suggest investors may need $1.1 trillion to pay off yen carry trade loans. Structural changes may impact future strategies.
🧵 5. Kelly advises against rushing back into carry trades, citing ongoing structural shifts. Market sentiment and central bank policies may evolve significantly.
🧵 Read more at: https://www.cnbc.com/2024/08/13/carry-trades-why-strategists-believe-a-major-unwind-is-far-from-over.html