Why You Should Care About Carry Trades


Manage episode 250360829 series 2137790
By Money For the Rest of Us and J. David Stein. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

How investors make money with carry trades, how central banks encourage such trades, and what are the dangers to financial markets and the economy when carry trades get too big.

Topics covered include:

  • What are the attributes and examples of carry trades.
  • Why do carry trades exist even though investors can suffer massive losses.
  • What was Volmageddeon and Francogeddan.
  • How central banks are the largest carry traders and their actions encourage even more carry trades.
  • Why carry trades are deflationary and lead to systemic risk.
  • What should individual investors do about carry trades and how to take advantage of carry crashes.

Thanks to Robinhood and NetSuite for sponsoring the episode

For show notes and more information on this episode click here.

295 episodes