Download or read book The Rise of Carry The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis written by Tim Lee and published by McGraw Hill Professional. This book was released on 2019-12-13 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: Protect yourself from the next financial meltdown with this game-changing primer on financial markets, the economy—and the meteoric rise of carry. The financial shelves are filled with books that explain how popular carry trading has become in recent years. But none has revealed just how significant a role it plays in the global economy—until now. A groundbreaking book sure to leave its mark in the canon of investing literature, The Rise of Carry explains how carry trading has virtually shaped the global economic picture—one of decaying economic growth, recurring crises, wealth disparity, and, in too many places, social and political upheaval. The authors explain how carry trades work—particularly in the currency and stock markets—and provide a compelling case for how carry trades have come to dominate the entire global business cycle. They provide thorough analyses of critical but often overlooked topics and issues, including: •The active role stock prices play in causing recessions—as opposed to the common belief that recessions cause price crashes •The real driving force behind financial asset prices •The ways that carry, volatility selling, leverage, liquidity, and profitability affect the business cycle •How positive returns to carry over time are related to market volatility—and how central bank policies have supercharged these returns Simply put, carry trading is now the primary determinant of the global business cycle—a pattern of long, steady but unspectacular expansions punctuated by catastrophic crises. The Rise of Carry provides foundational knowledge and expert insights you need to protect yourself from what have come to be common market upheavals—as well as the next major crisis.

Download or read book Handbook of Exchange Rates written by Jessica James and published by John Wiley & Sons. This book was released on 2012-05-29 with total page 674 pages. Available in PDF, EPUB and Kindle. Book excerpt: Praise for Handbook of Exchange Rates “This book is remarkable. I expect it to become the anchor reference for people working in the foreign exchange field.” —Richard K. Lyons, Dean and Professor of Finance, Haas School of Business, University of California Berkeley “It is quite easily the most wide ranging treaty of expertise on the forex market I have ever come across. I will be keeping a copy close to my fingertips.” —Jim O’Neill, Chairman, Goldman Sachs Asset Management How should we evaluate the forecasting power of models? What are appropriate loss functions for major market participants? Is the exchange rate the only means of adjustment? Handbook of Exchange Rates answers these questions and many more, equipping readers with the relevant concepts and policies for working in today’s international economic climate. Featuring contributions written by leading specialists from the global financial arena, this handbook provides a collection of original ideas on foreign exchange (FX) rates in four succinct sections: • Overview introduces the history of the FX market and exchange rate regimes, discussing key instruments in the trading environment as well as macro and micro approaches to FX determination. • Exchange Rate Models and Methods focuses on forecasting exchange rates, featuring methodological contributions on the statistical methods for evaluating forecast performance, parity relationships, fair value models, and flow–based models. • FX Markets and Products outlines active currency management, currency hedging, hedge accounting; high frequency and algorithmic trading in FX; and FX strategy-based products. • FX Markets and Policy explores the current policies in place in global markets and presents a framework for analyzing financial crises. Throughout the book, topics are explored in-depth alongside their founding principles. Each chapter uses real-world examples from the financial industry and concludes with a summary that outlines key points and concepts. Handbook of Exchange Rates is an essential reference for fund managers and investors as well as practitioners and researchers working in finance, banking, business, and econometrics. The book also serves as a valuable supplement for courses on economics, business, and international finance at the upper-undergraduate and graduate levels.

Download or read book Currency Carry Trades written by Blake Mitchell and published by . This book was released on 2023-09-20 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Carry Trading Mastery: Your Roadmap to Profiting from Forex and Interest Rates Unleash the potential of the Forex market and interest rates with "Carry Trading Mastery." This comprehensive guide takes you on a journey to understand and master the art of carry trading, where you can profit from the differentials in interest rates. Here's why this book is a game-changer: ���� Chapter 1: Fundamentals of Forex Trading and Interest Rates (Page 12) Build a strong foundation by learning the basics of Forex trading and how interest rates impact currency markets. ���� Chapter 2: The Concept of Carry Trade Strategy (Page 18) Dive into the core of carry trading and understand how this strategy works. ���� Chapter 3: Analyzing Currency Correlations (Page 23) Learn the importance of currency correlations in optimizing your carry trade strategy. ���� Chapter 4: Factors Affecting Exchange Rates (Page 28) Explore the key factors that influence exchange rates, giving you a competitive edge. ���� Chapter 5: Interest Rate Parity Theories (Page 33) Delve into interest rate parity theories and their implications on currency markets. ���� Chapter 6: Identifying High-Yield and Low-Yield Currencies (Page 38) Discover how to identify currencies with high-yield potential for your carry trade. ���� Chapter 7: Technical Analysis in Currency Carry Trades (Page 43) Master technical analysis techniques to refine your currency carry trading decisions. ���� Chapter 8: Fundamental Analysis in Currency Carry Trades (Page 49) Combine fundamental analysis with your carry trading strategy for better results. ����️ Chapter 9: Risk Management in Currency Carry Trades (Page 55) Learn crucial risk management strategies to protect your investments. ���� Chapter 10: Psychological Aspects of Currency Carry Trading (Page 61) Explore the psychology behind successful carry trading and develop a winning mindset. ���� Chapter 11: Formulating and Executing Carry Trade Strategies (Page 67) Create and execute effective carry trade strategies with confidence. ����️ Chapter 15: Global Economic Trends and Carry Trades (Page 86) Stay informed about global economic trends and their impact on your carry trades. ���� Chapter 16: Regulatory Considerations in Forex Trading (Page 90) Understand the regulatory landscape of Forex trading to ensure compliance. ���� Chapter 17: Alternative Carry Trade Strategies (Page 94) Explore alternative carry trade strategies to diversify your approach. ���� Chapter 18: Future Outlook for Carry Trading (Page 98) Gain insights into the future of carry trading and adapt to evolving market conditions. Conclusion: Applying Knowledge and Embracing the Journey (Page 102) "Carry Trading Mastery" is your passport to success in the world of carry trading. Whether you're a novice or experienced trader, this book equips you with the knowledge and strategies needed to thrive in this exciting market. Don't miss this opportunity to unlock the secrets of carry trading success. Get your copy of "Carry Trading Mastery" now and embark on a journey towards financial prosperity!

Download or read book Innovations in Quantitative Risk Management written by Kathrin Glau and published by Springer. This book was released on 2015-01-09 with total page 434 pages. Available in PDF, EPUB and Kindle. Book excerpt: Quantitative models are omnipresent –but often controversially discussed– in todays risk management practice. New regulations, innovative financial products, and advances in valuation techniques provide a continuous flow of challenging problems for financial engineers and risk managers alike. Designing a sound stochastic model requires finding a careful balance between parsimonious model assumptions, mathematical viability, and interpretability of the output. Moreover, data requirements and the end-user training are to be considered as well. The KPMG Center of Excellence in Risk Management conference Risk Management Reloaded and this proceedings volume contribute to bridging the gap between academia –providing methodological advances– and practice –having a firm understanding of the economic conditions in which a given model is used. Discussed fields of application range from asset management, credit risk, and energy to risk management issues in insurance. Methodologically, dependence modeling, multiple-curve interest rate-models, and model risk are addressed. Finally, regulatory developments and possible limits of mathematical modeling are discussed.

Download or read book The Currency Carry Trade written by Barry Gillman and published by . This book was released on 2017 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: The currency carry trade: is it still viable?

Download or read book Uncovered Interest Parity and Carry Trades written by Torsten Abendroth and published by GRIN Verlag. This book was released on 2017-01-18 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2016 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,0, University of Frankfurt (Main) (Goethe Business School), language: English, abstract: The aim of this thesis is to test UIP by implementing an OLS regression analysis for five currency pairs which, according to CFTC data, global turnover data and carry-to-risk ratios, were among the most popular in the investor community. To increase the significance of this thesis for practitioners, the work will use one-month forward contracts which are used frequently by investors and include bid and ask rates in order to account for transaction costs. In addition, all currency pairs include the US Dollar for reasons of better liquidity, and therefore tighter bid-ask spreads. Moreover, this thesis will present recent findings in literature which try to explain deviations from UIP. Approaches can be separated by the focus on a risk premium, by irrational market behavior or by learning problems and market inefficiency. While most focus is laid on an explanation by a risk premium, it will be shown that it is crucial to combine the different scientific disciplines in order to solve the forward premium puzzle. In addition to this, the thesis will provide an outlook on the future attractiveness of carry trade strategies.

Download or read book Carry Trade Activity in International Markets written by Keshav Rastogi and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Interest rate differentials have been a driving force behind exchange rate movements in recent years .Low exchange rate volatility and persistent interest rate differentials have underpinned significant cross-currency positioning in recent years. This has focused market attention on the role of currency carry trade positions, and on the possibility that a sudden unwinding might adversely affect financial stability. The paper outlines the trading strategies used in carry trades, and then explores various sources of data to gauge carry trade activity by analyzing the ex-post uncovered interest returns and Risk-return trade offs for the sample target currencies using yen as the funding currency. The paper examines past and recent patterns of short term speculative flows that have led to financial fragility and increased costs for a number of economies.

Download or read book Theoretical Background and Simulation of the Carry Trade Strategy within CEE States written by Carina Wechtl and published by GRIN Verlag. This book was released on 2012-03-02 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2011 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1.8, Fachhochschule des bfi Wien GmbH, language: English, abstract: Research question: The main research question: "How does the carry trade strategy work?" is focused on a basic explanation of the carry trade strategy. This question is answered in chapter four including the risk and profitability of carry trades. The sub-question is: "What is the theoretical background?" This question is focused in chapter two, chapter three and the beginning of chapter four. Chapter seven summarizes this paper and gives the answer if someone should invest money by using this strategy.

Download or read book Day Trading and Swing Trading the Currency Market written by Kathy Lien and published by John Wiley & Sons. This book was released on 2015-12-01 with total page 291 pages. Available in PDF, EPUB and Kindle. Book excerpt: Play the forex markets to win with this invaluable guide to strategy and analysis Day Trading and Swing Trading the Currency Market gives forex traders the strategies and skills they need to approach this highly competitive arena on an equal footing with major institutions. Now in it's third edition, this invaluable guide provides the latest statistics, data, and analysis of recent events, giving you the most up-to-date picture of the state of the fast-moving foreign exchange markets. You'll learn how the interbank currency markets work, and how to borrow strategy from the biggest players to profit from trends. Clear and comprehensive, this book describes the technical and fundamental strategies that allow individual traders to compete with bank traders, and gives you comprehensive explanations of strategies involving intermarket relationships, interest rate differentials, option volatilities, news events, and more. The companion website gives you access to video seminars on how to be a better trader, providing another leg up in this competitive market. The multi-billion-dollar foreign exchange market is the most actively traded market in the world. With online trading platforms now offering retail traders direct access to the interbank foreign exchange market, there's never been a better time for individuals to learn the ropes of this somewhat secretive area. This book is your complete guide to forex trading, equipping you to play with the big guys and win—on your own terms. Understand how the foreign currency markets work, and the forces that move them Analyze the market to profit from short-term swings using time-tested strategies Learn a variety of technical trades for navigating overbought or oversold markets Examine the unique characteristics of various currency pairs Many of the world's most successful traders have made the bulk of their winnings in the currency market, and now it's your turn. Day Trading and Swing Trading the Currency Market is the must-have guide for all foreign exchange traders.

Download or read book Currency Carry Trades written by Suk-Joong Kim and published by . This book was released on 2018 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate carry trade opportunities in major currencies against the US Dollar over the period 2 Jan 1999 to 31 Dec 2012. There is evidence of significant Australian Dollar (AUD), Euro and Japanese Yen (JPY) carry trades during non-crisis periods. The AUD (JPY) was an investment (a funding) currency, and the Euro was both. However, cross currency carry trades were not present. For the AUD and JPY, we find that carry trades were more likely with low volatility and volume. Macroeconomic news that appreciate (depreciate) the AUD (the JPY) also stimulated the AUD (the JPY) carry trades. However, there is no evidence of meaningful and consistent impact of macroeconomic news on the EUR carry trades. For weekly horizon investigations, we find that net long futures positions in the AUD promoted carry trades in the AUD and JPY. However, net long positions in the JPY only managed to reduce JPY carry trade probability.

Download or read book The Broad Yen Carry Trade written by Masazumi Hattori and published by . This book was released on 2007 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Yen carry trades have traditionally been viewed in narrow terms purely as a foreign exchange transaction. However, evidence from the waxing and waning of balance sheets of foreign banks operating in Japan points to a broader notion of the carry trade. Yen liabilities fund not only pure currency carry trades, but also fund the general increase in balance sheets of hedge funds and financial intermediaries. The difference in overnight rates across countries is a crucial determinant of balance sheet changes. Domestic monetary policy thus has a global dimension.--Author's description.

Download or read book Adventures of a Currency Trader written by Rob Booker and published by John Wiley & Sons. This book was released on 2010-12-28 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: Praise for ADVENTURES of a CURRENCY TRADER "A truly easy, unique, and enjoyable read! Rob has done it once again to teach us in the funniest way possible how not to make the most common trading mistakes. If you are tired of reading how-to books, this is perfect for you. I highly recommend this book to all traders. Everyone will learn something about themselves by reading this book." —Kathy Lien, author, Day Trading the Currency Market, and Chief Strategist, www.dailyfx.com "Adventures of a Currency Trader is a must read for anyone who has ever traded or is thinking about trading in the Forex markets. Rob Booker has a unique way of taking years of market knowledge and transforming it into an educational and entertaining experience. It has quickly become a cult classic in my trading library!" —H. Jack Bouroudjian, Principal, Brewer Investment Group "Brilliant! Rob's humor and humanity shine through in this parable about trading and life. Filled with wisdom and wit, it's an exhilarating rollercoaster ride through the peaks and valleys of the learning curve, with many valuable lessons learned along the way." —Ed Ponsi, President, FXEducator.com "Rob's fable of everyman 'Harry Banes' is destined to become a trading classic. This is both the missing piece and the foundation that comes before the strategies and methodologies. The search for the Holy Grail begins and ends in the heart and mind. The journey is authentic and real and if you're willing to take it with Rob, you will be rewarded in the end. Seldom has psychology and wisdom been so entertaining!" —Raghee Horner, trader and author of Forex Trading for Maximum Profit and Days of Forex Trading "In a series of insightful and entertaining vignettes, Rob Booker teaches both the novice and the experienced trader some hard won truths about the currency market. It's a must read book written by a guy who survived the trenches and went on to prosper in the biggest and most competitive financial market in the world." —Boris Schlossberg, Senior Currency Strategist, Forex Capital Markets LLC, and author of Technical Analysis of the Currency Market

Download or read book Diversification Benefits of Currency Carry Trade written by and published by . This book was released on 2015 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Anatomy of Sudden Yen Appreciations written by Mr.Fei Han and published by International Monetary Fund. This book was released on 2019-07-01 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The yen is an important barometer for the Japanese economy. Depreciations are typically associated with favorable economic developments such as increased corporate profits, rising equity prices, and upward pressure on domestic consumer prices. On the other hand, large and sharp appreciations run the risk of lowering actual and expected inflation, squeezing corporate profits, generating a negative wealth effect through depressed equity prices, and reducing confidence in the Bank of Japan’s efforts to reflate the domestic economy and achieve the inflation target. This paper takes a closer look at underlying drivers of rapid yen appreciations, highlighting the key role of carry-trade and the zero lower bound as important amplifiers.

Download or read book Currency Carry Trades in Latin America written by and published by . This book was released on 2015 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Evidence of Carry Trade Activity written by Alexandra Heath and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Interest rate differentials have been a driving force behind exchange rate movements in recent years. This has focused market attention on the role of currency carry trade positions, and on the possibility that a sudden unwinding might adversely affect financial stability. However, carry trades are notoriously difficult to track in the available data. This special feature first outlines the investor base and trading strategies used in carry trades, and then explores various sources of data to gauge activity.

Download or read book Currency Carry Trades in Latin America written by Bank for International Settlements and published by . This book was released on 2015 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report seeks to shed light on the characteristics of currency carry trades in Latin America. Partly reflecting the degree of financial market integration and development, as well as the effects of regulation, carry trades in the region have typically been implemented by taking long forward positions in foreign exchange derivatives markets (offshore or onshore), or in some cases through the acquisition of domestic debt securities in destination currencies. Carry trades have traditionally been implemented at short investment horizons by highly leveraged investors such as hedge funds. However, interviews with market participants have indicated that currency carry trade strategies and investor composition have changed significantly in Latin America since the global financial crisis due to the reduced attractiveness of carry trade investments, shortage of financing for risky, highly leveraged investments like carry trades, and the effects of regulation. Partly as a result, in recent years real money investors who rely less on leverage and who have longer investment horizons have reportedly played a larger role in cross-border portfolio investment, while the relative importance of hedge funds has been declining.