The emerging market carry trade is back on, helping to chase higher the very assets that were sold off last year amid concerns U. What history tells us about the carry trade.

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A carry trade is when investors borrow in a low-yielding currency, such as the yen and sometimes the U. A weakening currency is central to the carry trade since it means that investors have less to repay when they cash out of the trade. This week, Greece sold its first international bond issue in four years, priced at an initial yield of Read More The most important indicator in the world right now: Last year, emerging market assets sold off after the U.

Federal Reserve first broached its plans to begin tapering its asset purchases, as expectations that would cause interest rates to rise spurred an outflow of funds.

But Idris noted U. Read More Has the emerging market buying moment arrived? Read More Here's how a weaker yuan hurts corporate China. It expects Russia's ruble, Turkey's lira and South Africa's rand to benefit from the trade short term, while it may also be a good time to accumulate China's yuan and possibly even Mexico's peso. Read More Rupee on a roll, but how far will it go?

Societe Generale expects carry trades will get a fillip from strong Japanese flows, especially for the Australian and New Zealand dollars and South Africa's rand, reinforced by expectations the Bank of Japan BOJ will ease policy further in coming months. Japanese retail investors are heavily positioned in emerging market assets, it said, noting that of Com's Leslie Shaffer; Follow her on Twitter LeslieShaffer1.

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Investing for Income: Can Currency Carry Trades Replace Evaporating Yields? | CFA Institute Enterprising Investor

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Emerging markets carry trade? Why I still expect Chinese stimulus: The yen Last year, emerging market assets sold off after the U.

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Read More Here's how a weaker yuan hurts corporate China "The more dovish tone of the ECB is compensating somewhat for expectations of the Fed possibly raising rates a few months earlier than the market had in mind at the beginning of the year," Credit Agricole said in a note this week, adding U.

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