Tim Lee is the founder of the independent economics consultancy pi Economics, serving financial institutions from hedge funds to traditional asset managers. Previously he worked for global asset managers including GT Management and Invesco in Hong Kong and London. He is the author of the highly regarded Economics for Professional Investors (2nd edition, 1998) and his commentaries and analysis have been widely quoted in the media. Tim was educated at Magdalene College, Cambridge University.

Jamie Lee works for investment guru and philanthropist Jeremy Grantham, focusing on environmental research and volatility trading. He previously worked as economist and analyst for asset management companies in Boston and London. Jamie holds a B.A. in Mathematics and English from Dartmouth College.

Kevin Coldiron teaches the Masters in Financial Engineering course at Berkeley (Haas Business School), having previously had a very successful career in asset management with Barclays Global Investors and the hedge fund Algert Coldiron, which he co-founded.

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A first-of-its-kind primer on markets and the economy-providing the knowledge you need to protect yourself from the next financial meltdown. It's well known that carry trading has been a driving force in financial markets for years. But carry is actually much more than this. In fact, it has become the primary determinant of the global business cycle. The first book of its kind, The Rise of Carry explains how financial markets work today, how they relate to the overall economy, the increasingly important role of carry in the overall economy-and how it feeds the never-ending cycles of boom to bust and back again. The Rise of Carry provides critical but often overlooked foundational knowledge, such as: .The active role stock prices play in causing recessions (as opposed to the common belief that recessions cause price crashes).The true driving force behind financial asset prices.How carry, volatility-selling, leverage, liquidity, and profitability affect the business cycle.How positive returns to carry over time are related to market volatility-and how central bank policies have acted to supercharge these returns Finally, you'll gain important insight into how the rise of carry is part of a broader phenomenon that includes growing inequality in wealth and power and, by extension, other adverse political and social developments. While there has been an increasing amount of work in academia on carry trades, this groundbreaking book is a first for investors.

Contenu

Figures and Tables Preface and Acknowledgments

1 Introduction-The Nature of Carry

2 Currency Carry Trades and Their Role in the Global Economy

3 Carry, Leverage, and Credit

4 Dimensions of Carry and Its Profitability as an Investment Strategy

5 The Agents of Carry

6 The Fundamental Nature of the Carry Regime

7 The Monetary Ramifications of the Carry Regime

8 Carry, Financial Bubbles, and the Business Cycle

9 The Foundation of Carry in the Structure of Volatility

10 Does the Carry Regime Have to Exist?