Carry Trades: How Long Does Liquidation Take to Recover?
August 6, 2007
The drawdown in carry trades last night matched the sell-off that we saw back in March. David Rodriguez, one of my Currency Analysts at DailyFX.com did a great study on how prior cases of carry trade liquidation lasted and the amount it took for the entire move to be recovered.
Here is a good chart with prior carry trade drawdowns (this article was done on Friday)
More on this topic
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Carry Trade Unwinding
(naked capitalism, 8/16/07)
Global Alpha, Carry Trade Victim
(naked capitalism, 9/13/07)
Plummeting British Pound Leads to Worries of Another Currency Market “Black Wednesday”
(Money Morning, 3/10/10)
Posted in Carry Trades, DailyFX, Japanese Yen, Stock Market
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August 9th, 2007 at 10:37 am
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