The ever-popular yen carry trade collapsed this month as the Japanese currency rose. A lesser-known version of the strategy is arguably more resilient to such shocks.
Transactions involving borrowings yuan Investors buying higher-yielding assets should be more resilient as China’s central bank maintains its accommodative monetary policy, according to Royal Bank of Canada. The yuan carry trade differs from the yen carry trade because it mainly involves exporters and multinationals rather than speculators, according to data from Macquarie Group Ltd.
