rwa
12 min
Brazilian Real Carry Trade: 20 Years, Hedged and Unhedged
A 20-year backtest of the Brazilian real carry trade for a dollar investor in DI deposits: 5.4% a year unhedged against 3.1% hedged, a 45% drawdown that took until 2025 to recover, and an explorer of all 237 three-month windows since 2006.
