Swiss Franc Becomes Carry Trade Funding Currency After Yen
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- Reuters reports investors are setting sights on the Swiss franc for popular carry trades following intervention in the yen.
- ING analysis, cited by tmgm.com, highlights the Swiss franc's growing role as a funding currency for carry trades.
Why it matters: Carry trades borrow in low-yield currencies to fund investments in higher-yielding assets, so when the yen's funding-currency status is disrupted by intervention, the Swiss franc — itself a low-rate currency — becomes the logical substitute, as flagged by ING and reflected across all four headlines covering the story.
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