Endangered FX Funds Double Their Returns Thanks to Carry Trades
- Carry traders seize on biggest rate divergence since 2008
- Pace of FX fund closure slows as carry trading boosts returns
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For more than a decade, running a foreign exchange fund meant having to defend lackluster returns and worrying about the imminent threat of closure.
But this year, long-suffering currency investors are getting a lifeline from global central banks pursuing policies that are aggressive, disjointed — and perfect for those who make money from exploiting gaps in interest rates from one nation to another.