Goldman expects one yen trade to continue thriving even as another fades
While effects of intervention on the Japanese yen appears to be fading, the relative value carry strategies should continue to thrive, Goldman says.
TL;DR
- Goldman Sachs believes relative value carry strategies will continue to thrive.
- U.S. interventions in the yen and Treasury markets have supported assets other than the dollar.
- Carry strategies are performing exceptionally well, on track for their best year since 2010.
- Global economic conditions are seen as supportive for future carry performance.
- Europe could be a focus due to potential geopolitical tensions and energy prices related to gas storage.