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EM carry trade headed for bust

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BofA is using options to bet the Russian currency will decline amid oil price fluctuations, according to the bank's research.

Moscow

INVESTORS reaping handsome returns on emerging-market currencies this year might do well to heed a warning once made by Harvard economist Jeffrey Frankel, who likened carry trading to "picking up pennies in front of a steam roller".

Economic theory - and history - suggest...

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