Quant Radio: How Global Neutral Rates Impact Currency Carry Strategies?

What really drives the profitability of currency carry trades? In this deep dive, we break down the fascinating connection between global neutral interest rates and carry trade returns, inspired by the academic study Twin Stars: Neutral Rates and Currency Risk Premia by Furu, Fontaine, and Crone.Join us as we explore how long-term interest rate trends, bond market connections, and shifting global economic forces shape currency risk premiums. Are big yield gaps always a green light for carry trades, or is there more beneath the surface? Tune in to uncover the key insights that could change how you think about forex markets and macroeconomic trends.Find the full research paper here: https://community.quantopian.com/c/community-forums/how-global-neutral-rates-impact-currency-carry-strategies-quantpedia
For more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.