Real estate phrase for the day: Carry Trade
February 22nd 2007 08:43
by Global Property Guide Team
Carry trade is defined as The speculation strategy that borrows an asset at one interest rate, sells the asset, then invests those funds into a different asset that generates a higher interest rate yield. Profit is acquired by the difference between the cost of the borrowed asset and the yield on the purchased asset.
There’s an echo among real estate forums lately that Japanese increasing rate versus the declining value of Japanese Yen may greatly affect the yen-carry trade.
According to the latest Reuters report, however, “high risk yen carry trades exploiting Japan’s low interest rates are in no danger of losing their appeal as long as Japanese monetary policy remains predictable and financial market volatility stays low.”
So what is your opinion on this? Do check out the Global Property Guide Forum and start posting a new thread!
via: Reuters
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Global Property Guide blogsource
Carry trade is defined as The speculation strategy that borrows an asset at one interest rate, sells the asset, then invests those funds into a different asset that generates a higher interest rate yield. Profit is acquired by the difference between the cost of the borrowed asset and the yield on the purchased asset.
There’s an echo among real estate forums lately that Japanese increasing rate versus the declining value of Japanese Yen may greatly affect the yen-carry trade.
According to the latest Reuters report, however, “high risk yen carry trades exploiting Japan’s low interest rates are in no danger of losing their appeal as long as Japanese monetary policy remains predictable and financial market volatility stays low.”
So what is your opinion on this? Do check out the Global Property Guide Forum and start posting a new thread!
via: Reuters
Find more topics:
Global Property Guide wordpress
Global Property Guide blogsource
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