Reported 2 months ago
Fund managers predict that the recent global market selloff, triggered by unwinding yen-funded trades after a Bank of Japan rate hike, is far from over and may impact credit markets and the U.S. dollar. Despite a decrease in market volatility, uncertainty remains regarding the extent of the remaining leveraged trades. Analysts estimate that investors may need to find over $1 trillion to settle yen carry-trade borrowings, with concerns about potential pressures on banks and the credit market continuing. The situation highlights the delicate balance in risk markets as analysts monitor related bond dynamics.
Source: YAHOO