---
title: Following the Stars: Long-Run Rates in the Carry Trade
url: https://www.ml-quant.com/papers/ssrn/7684526/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-11-14
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7684526
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7684526
featured: 2026-11-13
citations: unknown
topic: Asset Pricing & Factors
---


# Following the Stars: Long-Run Rates in the Carry Trade

Research shows that sorting currencies on long-run interest-rate differentials yields a carry strategy with higher Sharpe ratios and significant alpha versus traditional carry.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7684526
- Identifier: SSRN 7684526
- Released: 2026-11-11
- First featured: Quant Letter No. 139 (2026-11-13): https://www.ml-quant.com/issues/2026-11-13/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Asset Pricing & Factors
- Authors: Mohammed Mehdi Kaebi, Igor Ferreira Batista Martins

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