Has there ever been a carry trade that has not ended badly

Reference no: EM131305383

1. An anonymous billionaire investor was quoted in the Wall Street Journal as asking: "Has there ever been a carry trade that hasn't ended badly?" What is a carry trade? Why might it end badly?

2. Interest rates on U.S. Treasury bills are typically much lower than interest rates on U.S. Treasury notes and bonds. If the federal government wants to reduce the interest charges it pays when it borrows money, why doesn't the Treasury stop selling Treasury notes and bonds and sell only bills?

Reference no: EM131305383

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