To fund or not to fund?

Yen still king as funding currency, but bonds trump FX carry

purse-squeeze

After the European Central Bank (ECB) implemented negative deposit rates in the eurozone last month, the euro emerged as a potential alternative funding currency to the yen for carry trades – a strategy that was hugely popular before the financial crisis and is coming to the fore once again as a potentially winning formula.

But, with volatility lingering near historic lows and interest rates in major economies stagnating around zero, strategists are divided on whether carry trades could make a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: