Size of the carry trade.

• Position: OFF THE NEWS - Brief article

Bank of Japan officials admit they are not fully aware of the size of the so-called "carry trade" (global borrowing at Japan's low interest rates) because a lot of the lending deals are struck outside of Japan and thus are hard to track. Officials say they are not exactly sure of the domestic retail component of the carry trade, but suggest perhaps one-quarter or even one-third involves the domestic retail sector.

What strategists are confident about is that if the recent risk aversion in global financial markets...