Carry trade unwind
MarketsDefinition
Sudden reversal of carry positions when funding currencies (typically JPY, CHF) rally sharply. Forces leveraged longs in higher-yielding currencies to close out, amplifying moves.
August 2024 yen carry-unwind crashed Japanese stocks 12% in a day. March 2020 dollar surge crushed EM carry. Identify carry-unwind risk via VIX spikes + funding-currency strengthening.
August 2024 yen carry-unwind crashed Japanese stocks 12% in a day. March 2020 dollar surge crushed EM carry. Identify carry-unwind risk via VIX spikes + funding-currency strengthening.
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