Asset Management /
Wealth Management
Carry trade carries more risk for Asian investors in 2026
'Traffic jam’ for debt issuance to drive up long-term interest rates, leading to funding volatility
Bayani S Cruz
21 Jan 2026
As global markets navigate the opening weeks of 2026, the era of easy profits from carry trades, borrowing in low-interest currencies to chase higher yields elsewhere, is facing its most significant stress test since the sharp bout of market volatility linked to yen carry unwinding in 2024.