Carry trades refer to operations wherein an investor borrows in a currency with low interest rates, such as the Japanese yen, and reinvests the proceeds in higher-yielding assets elsewhere.
"You can't unwind the biggest carry trade the world has ever seen without breaking a few heads.
A change in Japanese monetary policy prompted one strategist to warn of the "implosion" of the yen carry trade over a short-term basis.
watch nowEd Rogers of Rogers Investment Advisors said the yen carry trade isn't dead yet, despite the deepening stock market sell-off.
"Certainly there is going to be some momentary panic, I think, about the yen carry trade.
Persons:
Richard A, Brooks, Kit Juckes, Juckes, Russell Napier, Ed Rogers, Rogers, CNBC's
Organizations:
Tokyo Stock Exchange, Afp, Getty, Swiss, Societe Generale, U.S, Bank of Japan, Rogers Investment Advisors
Locations:
Tokyo, London