Week 9 — May 29: Carry Trades & Macro Bets
Topics: Carry trades, macro bets, currency and international investment strategies
Assignment Due: Individual HW 3 — FX & Parity Relationships (30 points)
Key Concepts
- Currency carry trade: mechanics, returns, and crash risk
- Macro hedge fund strategies: global macro, CTA, risk parity
- Sovereign debt crises and currency crises
- Geopolitical risk and FX markets