JPMorgan Chase: 75% of global carry trades have been closed, and G-10 carry trades are running out of time

JPMorgan said three-quarters of the world's carry trades have been closed, with the recent decline wiping out this year's gains. Quantitative strategists Antonin Delair, Meera Chandan and Kunj Padh said in a letter to clients that the returns of the G-10, emerging market and global carry trade baskets tracked by the bank have fallen by about 10% since May. The decline wiped out the returns so far this year and slashed the profits accumulated since the end of 2022. The spot part of the global carry trade basket shows that 75% of the carry trades have been closed, the team wrote. They reiterated that there is not much time left for the G-10 carry trade. The strategists said there may be little chance of a rebound in August, during which central banks have a light schedule and volatility has begun to cool. (Jinshi)