The Dollar Carry-Trade Denialists Are Wrong

To carry trade or not to carry trade. That is the question.

In the last few weeks a host of different banks have stepped forward to question both the depth and degree of the current dollar carry trade.  Among them have been Goldman Sachs, UBS and Barclays Capital – all claiming the risks of executing speculative dollar-funded carry trades still outweigh the potential returns, meaning the trade isn’t half as popular as the market is making out, nor is it contributing to any such thing as a global asset bubble.

Considering the above then it’s interesting that Sean Corrigan of Diapason Commodities does his best to prove the exact opposite in his latest note.

Read the whole thing at FT Alphaville >>

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