Another bruising unwind of the yen carry trade?

 

Data show investors are piling back into bets against the Japanese yen, in a dynamic reminiscent of what preceded the violent reversal that shook global markets imarkets on Aug. 5.

https://www.marketwatch.com/story/is-the-stock-market-meltdown-due-to-the-unwind-of-this-popular-hedge-fund-trade-2f6ab020

IMF blamed an unusually prolonged period of low volatility for encouraging hedge funds and other speculators to use leverage and other derivatives like forwards and swaps to supercharge their bets against the yen.

Joseph Adinolfi MarketWatch 21 November 2024

https://www.marketwatch.com/story/are-traders-setting-the-stage-for-another-bruising-unwind-of-the-yen-carry-trade-8b8fc73a

Börsen i Stockholm och New York 4-5 augusti 2024

https://englundmacro.blogspot.com/2024/08/borsen-i-stockholm-och-new-york-4-5.html

The yen carry trade was a sure-fire recipe for easy profits:

Just borrow in Japan, then plow it into Mexican bonds yielding over 10%, Nvidia’s soaring shares or even Bitcoin.

https://englundmacro.blogspot.com/2024/08/the-yen-carry-trade-remains-epicenter.html

Tillbaka till Rolfs länktips 22 November 2024

https://englundmacro.blogspot.com/2024/11/rolfs-lanktips-22-november-2024.html