Columbia University’s Allan Malz on The Rise Of Carry: “Financial systems in which many participants rely predominantly on leverage and carry rather than the quality of the assets to reach their return goals are unstable since small losses can trigger widespread insolvencies”. The authors “…offer a valuable new perspective on this old problem and recommended reading for anyone seeking a deeper understanding and timely reminder of this important and disturbing phenomenon.”
Read the Book Review on Cato.org: https://www.cato.org/cato-journal/winter-2021/rise-carry-dangerous-consequences-volatility-suppression-new-financial
