October 24, 2012 BY Gerald Segal

Is the failure of the 'carry trade' responsible for falling FX volumes?

Has global fiscal stimulus killed the 'carry trade'? Interesting article posted on Bloomberg (with thanks to CMAP's commentary section for bringing it to our attention), positing that central banks' stimulus has effectively killed the 'carry trade' in FX, whereby lower yielding currencies are borrowed to invest in higher yielding ones -- which normally leading to…

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