Carry trade
Political turmoil rattles Turkish lira carry trade
Echoes of March crackdown that sparked market rout leave traders on alert
Hedge funds burned as Hong Kong dollar bets implode
However, market participants still seem satisfied with the HKMA’s commitment to defending currency peg
ECB official open to offering liquidity aid to non-banks
Deputy director doesn’t rule out copying UK plan to extend repo facility to pension funds and life insurers
BIS says carry trade unwind is part of broader pattern
Multi-strategy hedge funds drive spillovers across asset classes, analysis finds
All eyes on the Fed
The US central bank faces a challenging path to fulfil its mandated goals
Triggers of August market ‘flare-up’ still in place, BIS warns
Leveraged positions remain at risk of sudden unwinding, as margin calls play amplifying role
Did the Fed make a mistake holding rates in July?
Experts warn Fed not to signal “panic” but to be ready to act aggressively if needed
Non-banks generally seen as lesser threat than banks
Central banks much more likely to want new tools to tackle risks in the banking sector
BoJ’s easing stance fuels yen undervaluation dilemma
Japanese policy-makers need to consider feedback loop that an undervalued yen has on cost-push inflation; reflect on YCC exit options in ‘broad perspective review’, writes Sayuri Shirai
A troubling trilemma
Central banks need to tread a fine line as they serve as the economy’s police, fire brigade and paramedics
The IFF China Report 2019
Insight and perspectives from the world's leaders, premier policy-makers and financiers
The IFF China Report 2019: New globalisation – The path to the future
Multilateral rules and multilateral bodies will need to be upgraded in the coming years to better represent the shift in economic gravity towards Asia, which has emerged as the largest contributor to global growth during the past decade.
BIS paper finds emerging market corporations exploiting carry trade
Study of emerging market foreign currency-denominated bond issuance by Bruno and Shin finds corporations appear to be issuing bonds as part of a carry trade, rather than financing investment
BIS paper analyses carry trades in Latin America
BIS working paper analyses currency carry trades in Latin America, the attractiveness and visibility of which have suffered in part due to regulatory changes
Hungarian economists take on ‘delayed overshoot' puzzle
Central Bank of Hungary economists examine the effect of carry trade activity on exchange rate dynamics, finding it does not explain delayed overshoot
International policy co-ordination is a 'fair weather' phenomenon, says Carstens
Bank of Mexico's Augustin Carstens says 'massive inflows' were driven by carry trade; argues macro-prudential measures 'no substitute' for strong fundamentals
Carry-trade inflows open to vicious circles, say Shin, Plantin
Centre for Economic Policy Research study shows interaction between capital inflows and monetary policy might destabilise carry trade
Safe haven effects caused exchange rate swings: IMF paper
Fund study identifies source of exchange rate volatility during financial crisis
RBNZ: carry trade reversed depreciation in NZD
Reserve Bank of New Zealand study shows high yielding currencies gradually offset declines in New Zealand dollar during crisis