A meltdown in world equity markets in recent days is more reflective of a wind-down of carry trades used by investors to juice their bets than a hard and fast shift in the U.S. economic outlook, analysts say.
“In our assessment a lot of this has been down to position capitulation as a number of macro funds have been caught the wrong way around on a trade, and stops have been triggered, initially starting with FX and the Japanese yen,” said Mark Dowding, chief investment officer at BlueBay Asset Management, referring to pre-determined levels that trigger buying or selling.
Bank for International Settlements data suggests cross-border yen borrowing has increased by $742 billion since the end of 2021, the bank noted. Banks give hedge funds leverage, essentially a loan to fund investing, which amplifies hedge fund returns but can also increase losses.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Global Market Scan: Smart power grids - Transforming global energy infrastructureCanada's construction news
Baca lebih lajut »
Premarket: Global stocks bounce back in whiplash reversalWall Street futures rise following Monday’s brutal decline
Baca lebih lajut »
How an Investing Strategy in Japan Spurred a Global Market RoutThe Dow, Nasdaq and S&P 500 all fell by over 2% on Aug. 5 as part of a worldwide selloff in stocks. Here’s how an investing strategy based on the Japanese...
Baca lebih lajut »