Nick Nasad
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The Economist's Take on Forex "Carry Trade" - A Good Read

I'm a big fan of The Economist magazine and try my best to go through it pretty much cover-to-cover each week. The "Buttonwood" article - the weekly take on markets within the Finance section - was talking about currency trading and the forex "carry trade".

The Economist: Buttonwoow - Carry on trading

While some of it is a little wonky, its quite interesting and goes into some nice depth about just how carry trade works, and talks about emperical evidence of returns possible by trading currencies based on higher vs lower yields. It's for a longer term time-frame, but using nominal rates the strategy was very profitable during 2001-2006 and 2011-2013.

Anyway, good stuff and I wanted to pass it along.


- Nick