INR-JPY Carry Trade: Liquidity concern
Principal, Forex Divn. BOA.
email: Brotin.Muhuri@bankofamerica.com
INR-JPY liquidityRupee is not fully convertible; so it is difficult for the global investors to participate.
Look at the Tokyo model where housewives sitting at home can bet on the JPY How will you ensure that you don't hit a margin call and your whole collateral is wiped out .
What you have written will work if you do it in absolute terms.
email: Brotin.Muhuri@bankofamerica.com
INR-JPY liquidityRupee is not fully convertible; so it is difficult for the global investors to participate.
Look at the Tokyo model where housewives sitting at home can bet on the JPY How will you ensure that you don't hit a margin call and your whole collateral is wiped out .
What you have written will work if you do it in absolute terms.
Labels: Comment from Brotin
posted by Samik Nath at
11:37 PM
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