Comment by AnimalMuppet
5 hours ago
OK, let me restate that, since I had to think about it for a bit to see what you were getting at:
The yen carry trade is when you borrow yen (at ~0% interest), convert to dollars, buy assets in dollars, those assets hopefully appreciate, but they don't have to appreciate all that much because you were able to buy them on leverage with no interest.
But the other way to win on that trade is if the yen becomes cheaper while you were holding dollar-based assets. So those who are currently in the carry trade (that is, have borrowed yen) would not mind if the yen suddenly became dramatically cheaper.
I think that's a longer form of what the parent is saying.
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