[1] For instance, commodities are usually negative carry assets, as they incur storage costs or may suffer from depreciation.
But in some circumstances, appropriately hedged commodities can be positive carry assets if the forward/futures market is willing to pay sufficient premium for future delivery.
By early year 2007, it was estimated that some US$1 trillion may have been staked on the yen carry trade[4] by Mrs.
Accommodative ECB monetary policy made low-yielding EUR an often-used funding currency for investment in risk assets.
The EUR was gaining in times of market stress (such as falls in China stocks in January 2016), although it was not a traditional safe-haven currency.
Particular attention has been focused on the use of Euro-denominated loans to purchase homes and other assets within Iceland.
There is some substantial mathematical evidence in macroeconomics that larger economies have more immunity to the disruptive aspects of the carry trade mainly due to the sheer quantity of their existing currency compared to the limited amount used for FOREX carry trades,[citation needed] but the collapse of the carry trade in 2008 is often blamed within Japan for a rapid appreciation of the yen.