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Currency-market carry trade returns bigger than in many years

Goldman Sachs says the carry trade has rebounded to levels that are larger than what many investors saw in prior years.

Reported · Written up by our desk · Global

A currency-market carry trade blamed for a large market blowup in 2024 has returned, with Goldman Sachs saying it is bigger than it has been in many years, according to MarketWatch.

The renewed activity points to renewed appetite for the strategy, which typically involves borrowing in lower-yielding currencies and investing in higher-yielding ones, MarketWatch noted.

MarketWatch frames the development as a notable shift from the prior episode that traders associated with the 2024 disruption, highlighting how quickly the positioning can change.

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