(Bloomberg) -- Volatility on major and emerging-
market currencies options rose as investors shunned riskier
assets amid concern subprime mortgage defaults may rise.
Demand for options granting the right to sell high-yielding
currencies soared as traders bought protection against further
yen appreciation while investors exited so-called carry trades.
The strategy involves borrowing where interest rates are low,
such as in Japan with an 0.5 percent rate, and investing in
countries such as Australia where the benchmark is 6.25 percent.
Read more at Bloomberg Currencies News
market currencies options rose as investors shunned riskier
assets amid concern subprime mortgage defaults may rise.
Demand for options granting the right to sell high-yielding
currencies soared as traders bought protection against further
yen appreciation while investors exited so-called carry trades.
The strategy involves borrowing where interest rates are low,
such as in Japan with an 0.5 percent rate, and investing in
countries such as Australia where the benchmark is 6.25 percent.
Read more at Bloomberg Currencies News
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