Is this an indirect example of the Carry trade on a BIG scale??

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that1guy
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Joined: Jan 11 2009
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Is this an indirect example of the Carry trade on a BIG scale??

Hi all,

 

Quick question here. I just read an article about a  bunch of other countries selling bonds denominated in Dollars. This sounds crazy to me,  but when I read through it again, it seemed to hint at the carry trade, but I dont know a lot about that form of trade myself, let alone entire countries doing it....

 

Well, it wont let me copy and paste the link, but the article is called, 'European nations opt for dollar issues' published  14Oct2009

http://www.ft.com/

 

You can also get to it through www.europac.net 

The only other reason I could see this type of move is that it has become cheaper to buy and issue dollars.....and since the US is issues so many they had no way to compete....but then again this is another form of the carry trade as I am seeing it

 

Any thoughts?

Mike

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