Massive carry trade still lurks in the shadows and looms over markets

There’s the carry trade, and then there’s the carry trade.

Billions of dollars of these bets boiled off in a destabilizing flash over the summer. Trillions might remain, slightly different, less obvious and all but forgotten by a market eager to move on.

“Everybody’s written about the carry trade, but they’ve not really written about the carry trade. It’s broader, more complex and more convoluted than it’s been sold,” said David Barrett, CEO of EBC Financial Group, a London-based brokerage and asset manager.