We were delighted to have Tim Lee, co-author of “The Rise of Carry” dial in from the UK and share his ideas on carry trades with our members yesterday (17 Sep). Carry trades—where low-yielding currencies fund high-yielding currencies—are playing an increasingly important role in the overall economy. Tim highlighted additional characteristics of carry trades which included taking on leveraged positions, providing liquidity, shorting volatility, and experiencing “saw tooth” return patterns.
More than 100 members dialled in to listen to Tim discuss examples and features of the carry regime, possible paths going forward, and indicators to watch out for. The stimulating session ended with many pertinent questions on deflation, hyperinflation, and the end game capital market scenarios from our members for Tim, who answered succinctly.
Thank you Tim for taking time out in the morning (UK time!) to speak to our members, and for all our members for dialling in!