What is Carry-Trade for Japan Yen?

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oem7110
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What is Carry-Trade for Japan Yen?

Post by oem7110 » Thu Feb 11, 2010 10:10 am

Does anyone have any suggestions on Money flows back to Japan Yen regularly to create a carry trade issues? If any International company from Japan, it makes sense to return their profit amount back to Japan for any financial purpose. If any investor / institution borrows Japan Yen for investment, and pay some interest for their loans, they only need to pay their interest annually without pay back all their loans, since they will keep borrow Japan Yen for investment for low interest rate.
Does anyone have any suggestions why money needs to flow back Japan regularly and cause the carry trade issues?
Thanks in advance for any suggestions
Eric

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