'It's a Carry World': EM trade notches longest run since 2008
Cathy Hepworth, who heads $1.5 trillion asset manager PGIM's emerging-markets debt team, doesn't hesitate when asked about her highest-conviction theme across the developing world: "Carry, carry, carry."
She's referring to a popular but often risky trade in which investors borrow cheaply in currencies like the US dollar, Japanese yen, or euro, and put the money to work in higher-yielding currencies like the Turkish lira, where interest payments on bonds or money-market funds can be as much as 40% or higher.
She's referring to a popular but often risky trade in which investors borrow cheaply in currencies like the US dollar, Japanese yen, or euro, and put the money to work in higher-yielding currencies like the Turkish lira, where interest payments on bonds or money-market funds can be as much as 40% or higher.
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