II. 2. The progress of Yen carry trade
Since 1990s, Japanese government and central bank started lowering interest rate policies so that Yen carry trade has begun.
1) After Kobe Earthquake in 1995, the Bank of Japan lowers the interest rate at 1%. In 1997, as financial crisis in East-Asia was broadening, Yen carry assets were paid off. In addition, The sharp increase in foreign bank as
II. Yen carry trade
II. 1. What is Yen carry trade?
II. 1. (1) Typical meaning
The typical meaning is “borrowing at low interest rates in yen and using the loan to buy higher yielding assets elsewhere.” During the past decade, the trade has become a “staple” for many investors. One of the most popular forms of the strategy exploits the gap between US and Japanese yields. Anyone
II. What Are Credit Derivatives?
Derivatives are defined as the exchange or contract which has economic values deriving from the reference assets or index. According to their types, there are overall forward, future, option, and swap. Derivatives are the financial derivatives, which are enabled to trade in the market while consisting of separating the credit risk only to the holder of basic p
(1) 금리
Volatility : How much?
What to do?
Beauty & Beast of Mismatch.
Direct / Indirect Impact
Lead & Lag
Risk Return Trade Offs
Portfolio Theory (바구니와 계란)
참가자 : 효용과 Wealth(부)의 합리적이고 이성적인 판단
시장 : 효율적
부의증가 => 효용도 증가 => 한계효용은 체감
즉
risk: Transaction Exposure, Translation exposure,
and Economy Exposure. Now, we are going to take a closer look at each exposure, their effect on
Dell Mercosur and what kind of countermeasure the company needs to have.
3-2. Transaction Exposure
Transaction exposure is a type of foreign exchange risk faced by companies that engage in
international trade. It is th