# What is a Yen Carry Trade?

Source: https://x.com/levie/status/1820355555288056314
Kiwi News: https://news.kiwistand.com/stories/What-is-a-Yen-Carry-Trade?index=0x66b08a98c3f728dda1f6282dd9511bcf7f1b3034513b9769e2f33219c92062dcd8af2ee9
Submitted by macbudkowski.eth on 2024-08-05 UTC, 8 upvotes, 1 comment

If you want to understand why the markets are collapsing, watch this video on the Yen Carry Trade.

## Comments

**macbudkowski.eth**: My family experienced that on a micro-scale. 

In Poland, banks used to give mortgages in Swiss francs. Since that currency was very stable, everyone thought it was a great deal because you paid a smaller interest rate than in our national currency. 

My parents - just like millions of other people - took a credit in Swiss francs.

But then, 2008 happened, and the Swiss franc went +50%, their interest rates went up, and so did the amounts people had to repay. It was - and for some people still is after 16 years - a bloodbath.