There's over 30 countries that have double digit interest rates. Why aren't these countries targeted for carry trade?
S&P DOW NASDAQ 10YR Ones of these things is not like the other one, one of these things just doesn't belong
Let me see if my thinking is correct.... The FED will raise rates. This causes a jump to US bonds/T-bills ect. from a draw back of emerging market bonds. The EM countries will then need to cash in foreign treasury bonds they hold to try to pay off their bonds that everyone is selling to buy UST. Some to most of these FX reserves are most likely UST, so we shouldn't see a spike in the UST until we see many EM bonds defaulting, right?
Companies in emerging markets will be feeling the butthurt if they have been issuing debt denominated in USD. Brace yourselves for some stop running this week.
Turkey, Chile and Peru currently have to most exposure to US denominated debt as a total of corporate debt. All are above 70% Indonesia, Kazakhstan and Vietnam all have +60%
Heads up: Ben Bernanke is giving interviews for his book release, he will be on bloomberg tonight i think.
Hopefully for him he will not meet some people using the commantary section over there, could become a bloodbath http://www.zerohedge.com/news/2015-10-08/according-bernanke-was-biggest-impact-qe
271k NFP - well above expectations with the USD rallying and PMs falling. December rate hike more likely now than anytime previously.