Hyun Song Shin on How Big the Yen Carry Trade Really Is
Odd Lots
Bloomberg
4.5 • 2K Ratings
🗓️ 29 August 2024
⏱️ 43 minutes
🧾️ Download transcript
Summary
Remember August 5th? That was the day that markets around the world plunged in historic fashion and everyone became an overnight expert on the yen carry trade. But what really is the yen carry trade? How big is it? Who is making the trade? And what is its connection to markets all around the world? On this episode, recorded at the Kansas City Federal Reserve Bank of Kansas City's Economic Symposium in Jackson Hole, Wyoming, we speak with Hyun Song Shin, economic advisor and head of research at the Bank for International Settlements. He walks us through the mechanics of the trade, what went on in early August, and the lessons we've already learned from it.
Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots
See omnystudio.com/listener for privacy information.
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Ecolab water for climate, less water, more growth. |
| 0:04.0 | Results will vary. |
| 0:06.0 | Learn more at Ecolab.com slash Ewc. |
| 0:09.0 | Ecolab water for climate, transforming the way the world thinks about water. Water for |
| 0:15.0 | Bloomberg's business value of AI event and networking reception. |
| 0:22.0 | This event will gather business and technology executives to share their experiences |
| 0:26.0 | and provide insight into their strategies for deploying AI that achieves a desirable ROI. |
| 0:31.0 | You'll also learn how companies have successfully implemented AI solutions that have improved productivity and profitability. |
| 0:37.0 | This program is proudly sponsored by IBM. |
| 0:40.0 | Register at Bloomberg Live.com slash AI slash radio. |
| 0:44.0 | Bloomberg Audio Studios |
| 0:50.0 | Podcasts, radio news. Hello and I'm Joe Wiesenthal., do you remember the Cary Trade Unwind? |
| 1:15.0 | That was so the Cary Trade, what's the deal? |
| 1:17.0 | Basically people borrow Yen and buy and video and then the yen went up |
| 1:21.0 | but then the trades didn't work as well? |
| 1:23.0 | Well, that was one aspect of the commentary. |
| 1:26.0 | That's like the Twitter version of what's happening. |
| 1:29.0 | Yeah, but I think actually, okay, so we are recording this on August 23rd. The Cary Trade Unwind happened, what was it, two weeks ago, two or three weeks ago? |
| 1:40.0 | It feels like a lifetime ago, and it's kind of remarkable how quickly it faded into the background with the market rally and the recovery |
| 1:49.2 | But the conversation at the time was that there is this carry trade which involves borrowing in lower |
| 1:56.3 | yielding currencies or lower interest rate currencies such as the yen and then investing in higher yielding assets like in theory US technology |
| 2:07.5 | stocks. Yeah but the problem is that some of the discourse around this has been I've kind of been offended by some of it |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Bloomberg, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Bloomberg and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.