The Rise of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis
McGraw-Hill Education (Verlag)
978-1-260-45840-4 (ISBN)
It’s well known that carry trading has been a driving force in financial markets for years. But carry is actually much more than this. In fact, it has become the primary determinant of the global business cycle.
The first book of its kind, The Rise of Carry explains how financial markets work today, how they relate to the overall economy, the increasingly important role of carry in the overall economy—and how it feeds the never-ending cycles of boom to bust and back again.
The Rise of Carry provides critical but often overlooked foundational knowledge, such as:
•The active role stock prices play in causing recessions (as opposed to the common belief that recessions cause price crashes)•The true driving force behind financial asset prices•How carry, volatility-selling, leverage, liquidity, and profitability affect the business cycle•How positive returns to carry over time are related to market volatility—and how central bank policies have acted to supercharge these returns
Finally, you’ll gain important insight into how the rise of carry is part of a broader phenomenon that includes growing inequality in wealth and power and, by extension, other adverse political and social developments. While there has been an increasing amount of work in academia on carry trades, this groundbreaking book is a first for investors.
Tim Lee has been a financial market economist for 38 years. He has worked in Hong Kong for GT Management as Asian economist, and in London for GT, LGT, Invesco, and Friends Ivory and Sime as European economist. He set up the independent research consultancy pi Economics in 2003. Jamie Lee spent four years as research analyst and economist at GMO in Boston, two years as economist and research analyst at Ruffer Asset Management in London, and two years at pi Economics in Connecticut. Kevin Coldiron teaches the Masters in Financial Engineering course at Berkeley (Haas Business School), having previously had a very successful career in asset management with Barclays Global Investors and the hedge fund Algert Coldiron, which he co-founded.
Figures and Tables
Preface and Acknowledgments
1 Introduction—The Nature of Carry
2 Currency Carry Trades and Their Role in the Global Economy
3 Carry, Leverage, and Credit
4 Dimensions of Carry and Its Profitability as
an Investment Strategy
5 The Agents of Carry
6 The Fundamental Nature of the Carry Regime
7 The Monetary Ramifications of the Carry Regime
8 Carry, Financial Bubbles, and the Business Cycle
9 The Foundation of Carry in the Structure of Volatility
10 Does the Carry Regime Have to Exist?
11 Carry Is Synonymous with Power
12 The Globalization of Carry
13 Beyond the Vanishing Point
Index
Erscheinungsdatum | 17.12.2019 |
---|---|
Verlagsort | OH |
Sprache | englisch |
Maße | 160 x 236 mm |
Gewicht | 447 g |
Themenwelt | Wirtschaft ► Volkswirtschaftslehre |
ISBN-10 | 1-260-45840-7 / 1260458407 |
ISBN-13 | 978-1-260-45840-4 / 9781260458404 |
Zustand | Neuware |
Haben Sie eine Frage zum Produkt? |
aus dem Bereich