Carry Trade Gains 12% as Volatility Eases

Carry‑trade strategy delivered ~12% return in 2026, its strongest annual start in three years as volatility fell.
Investors borrow low‑interest yen to buy Brazil real, Colombian peso and Turkish lira, aided by rising oil prices.
Citigroup and Goldman Sachs maintain recommendations; BofA’s John Locascio notes short‑term real bets and digital options.
S&P 500 hit a record high, reflecting broader calm across currencies, bonds and equities.