Amid the recent market volatility, I'm suddenly hearing a lot about something I honestly haven't spent much time on.

The Yen Carry Trade, which now seems to be one of the biggest focal points for investors.

So what is the uncary trade?

Why did it break down?

And what does it all mean for global markets?

I'm Allison Nathan, and this is Goldman Sachs exchanges. changes.

Today I'm speaking to Kamaksha Travetti, the head of Global Foreign Exchange,

Interest Rates and Emerging Market Strategy research. Krakhii, the head of Global Foreign Exchange, Interest

Rights and Emerging Market Strategy research,

and to Prenich Shaw, who is co-head of Global G10 FX

options trading in our Global Banking and Markets Division.

Kamakshia, Prenit, thanks so much for being here today.

Thanks for having us, Allison.

Yes, thank you, Allison.

Kamakshia, let's start on a very basic level.

What are our Cary trades? How do they work or at least how are our carry trades?

How do they work or at least how are they supposed to work?

Yeah, so at a very simple level, a carry trade is a strategy or an investment strategy

where an investor borrows in a currency where interest rates are low and

invest in a currency where interest rates or what is often called in the jargon carry, the carry or interest rates are higher.

And so essentially that strategy allows them to earn the spread between the low interest

rate currency where they're borrowed and the high interest rate currency where they've borrowed

...