'A Ticking Time Bomb': BCA Warns Yen Carry Trade Risk/Reward Is Poor

Authored by Arthur Budaghyan via BCAResearch.com,

Many investors and commentators expect the yen to appreciate when Japanese interest rates rise in absolute or relative terms. However, the yen has continued to depreciate even as its nominal and real interest rates have risen, and their differentials versus the US have improved (Chart 1).