RIP to the free money Carry Trade that carried markets for 20 years. You knew it was coming someday and with the Japanese 2-year spiking overnight, the borrowing rates for the YEN are now going to be competitive with other currencies. Think you can borrow in YEN at 0% and buy treasuries at 4.5%, think again…farewell easy money.
The Japanese Carry Trade is DEAD. Here’s What Happens Next! The Free Lun…
byu/CurtD34 instocks
Posted by CurtD34
13 Comments
Calls it is
Other central banks interest rates are projected to go low, borrow there instead.
The real issue is the japans high debt if rates go up. Default inc
The world economy is going to collapse because of this. The AI bubble is a joke compared to this.
Japanese carry trade died last year. Everyone with half a brain already unwinded it back then.
Yes, the world will soon end and the lack of the carry trade will cause all markets to crash. The power will go out worldwide, the dust will settle on the crops, and the people will all wait in line for bread scraps.
Just like in 2024, which we never recovered from.
Oh.
Money printers are turning back on, brrrr
After reading some of the comments, this has to be the worst sub.
the time to buy banks stocks is upon us
It is not dead. Look at USDJPY up 7% in month, it is cheaper to pay back Yen loans. Carry trade is well and very alive
That is market in a nutshell there will be new drug available at the next corner
That is market in a nutshell there will be new drug available at the next corner
Fed gotta raise rates to counter Japanese move. Also good for fighting inflation.