Hedge funds turn to exotics for EM carry trades

- By Joe Parsons
- @Joe_Parsons416
- 27 Jul 2023

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Dealers are seeing a resurgence in exotic foreign exchange options trading as hedge funds turn to cheaper structures to profit from emerging market carry trades.

FX carry trades have been among the most popular trades for market participants this year, with currencies such as the Brazilian real, Colombian peso, Hungarian forint, Mexican peso and Indonesian rupiah delivering significant returns.

The Bloomberg FX carry trade index, which measures the carry trade returns from eight emerging

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 print this content. Please contact customer services - www.fx-markets.com/static/contact-us to find out more.

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

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@fx-markets.com

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@fx-markets.com