The unwinding of the carry trade that's battered stocks in recent days isn't done, JPMorgan says.
It says that trade is probably only half over, as Japan looks poised to continue raising rates.
AdvertisementThe "carry trade" unwind that helped spark the bloodbath in US stocks over the past few days likely isn't close to over, a JPMorgan strategist says.
Market commentators say that's been partly stoked by a surprise 15-basis-point interest-rate hike in Japan, which triggered some investors to unwind a trade that's become popular in recent years.
In this trade, investors borrow cheap yen and deploy the cash into higher-yielding assets elsewhere, like US stocks.
Persons:
—, Arindam Sandilya, that's, Sandilya
Organizations:
JPMorgan, Service, FX, Bloomberg, Bank of
Locations:
Japan, Bank of Japan