What is the Carry Trade (and why does it matter)? Lance explains the mechanics of carry trades and yield spreads, and why the Japanese Yen and U.S. Dollar behaviors are causing an unwinding of that carry trade, and when margins go wrong. Reality check: The markets are fine. Markets have been spooked by some unexpected, exogenous event…like the unwinding of the carry trade. This will lead to selling across the board today, and not just in stocks. Anything that is a risk asset will be affected. What should you do? Nothing. Markets were already deeply over-sold. Watch for a spike in volatility. Let the day play out, and avoid any knee-jerk reactions. Video Length: 00:07:21More By This Author:Are The Credit Markets Cracking?
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