Buy Junky Currencies

Beller, Peter C.
June 2009
Forbes Asia;6/8/2009, Vol. 5 Issue 10, p40
The article offers information on the currency arbitrage strategy called the carry trade, which aims at exchanging a smaller currency with a dollar, pound or euro. It is an easier way to make money and get risk-adjusted returns. The higher money market yields on weak currencies more than make up for their devaluation. It is stated that such easy-money making strategies also come with disasters in which the currency being bought falls in value relative to the currency being borrowed.


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