TTU120: Carry - The Good, the Bad and the Ugly ft. Kevin Coldiron

In this episode, Niels and Rob is joined by Kevin Coldiron, co-author of the book “The Rise of Carry” and lecturer in Asset Management at UC Berkeley, to discuss the use of carry trading as a trading strategy, how it relates to volatility and risk, how carry trading creates market feedback effects, and how that is distinct from feedback created by other strategies, how it can play a role in financial bubbles, whether we are still in a carry regime or transitioning away from it and what comes after. ----- EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool In This Episode, we discuss:The increasing popularity of carry trading and its role in the global economyThe risk and volatility of carry trading, and how it can play a role in financial bubblesHow carry trading creates market feedback effects, and how that is distinct from feedback created by other strategiesThe role of liquidity within the carry worldThe future of carry ----- Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website. IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here. And you can get a free copy of my latest book “The Many Flavors of Trend Following” here. Learn more about the Trend Barometer here. Send your questions to info@toptradersunplugged.com And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast. Follow Kevin on Twitter Episode Timestamps: 00:00 - Intro 02:25 - Introduction to Kevin 05:53 - Background on the co-authors of Kevin’s book 09:43 - Definition of carry trading with examples 13:56 - Volatility vs. risk 23:11 - The role of Volatility in investing 28:27 - Carry trade suppressing volatility 35:55 - Does carry trades play a role in financial bubbles? 41:01 - The current carry regime? 43:38 - Carry in macroeconomics 52:48 - What comes after the carry regime? 01:05:44 -...