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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (2010)	11/10/2003 8:19:53 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

Some Investors 'Carry' Baggage Borrowing at Short-Term Rates To Partake in Longer-Term Debt Isn't as Attractive as It Used to Be By AARON LUCCHETTI Staff Reporter of THE WALL STREET JOURNAL Some bond investors have been playing a game of chicken, but it may be time to quit. These investors, including big Wall Street banks and hedge funds, have been using a strategy called a bond "carry trade" to borrow at short-term rates and reinvest in longer-term debt paying higher rates, pocketing the difference. But now some believe that short-term interest rates may rise soon, making the strategy less attractive and possibly leading to losses for investors. That concern has grown recently amid strong economic data, with the latest jolt coming Friday when the Labor Department said more jobs were created in October than expected and more were created in September than previously reported. online.wsj.com