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RePEcAsset Pricing & Factors

Carry Trade and Currency Crash Risk

Focusing on dollar-lira trading, the paper shows that higher crash risk significantly increases carry trade expected returns, accounting for 46–77% of compensation through Shapley decomposition.

Featured in No. 132 on 25 Sep 2026 · 8 days after release

Released
17 Sep 2026
First featured
No. 132 · 25 Sep 2026
Published in
Not yet, as far as Semantic Scholar knows
Fanfare
3 of 5
Identifier
RePEc:cpr:ceprdp:20745
Authors
Merve Mavus Kutuk and Sweder van Wijnbergen

Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).

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