(Bloomberg) -- Traders are buying options to protect
against a rising yen on speculation credit downgrades of U.S.
mortgage-backed bonds will spark a reversal in carry trades.
Moody's Investors Service yesterday lowered ratings on $5.2
billion of debt backed by mortgages to people with poor credit
histories due to rising defaults. Concern a housing slump will
slow the U.S. economy and increase losses at hedge funds may
discourage using yen loans to buy riskier assets, known as the
carry trade.
Read more at Bloomberg Currencies News
against a rising yen on speculation credit downgrades of U.S.
mortgage-backed bonds will spark a reversal in carry trades.
Moody's Investors Service yesterday lowered ratings on $5.2
billion of debt backed by mortgages to people with poor credit
histories due to rising defaults. Concern a housing slump will
slow the U.S. economy and increase losses at hedge funds may
discourage using yen loans to buy riskier assets, known as the
carry trade.
Read more at Bloomberg Currencies News
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