The Annotated Kyle Bass 'Short-Japan' Thesis

With JPY bleeding lower once again overnight extending to 28-month lows against the USD (and the long-end of the JGB curve starting to show some signs of anxiety), it is perhaps timely to revisit Kyle Bass’s five key reasons why Japan is the epicenter of the world’s failed monetary policy experiment. In this excellent and much-requested summary 8-minute clip, Bass summarizes his Japan thesis and destroys several of the myths that talking-heads like to assign to the so-called widow-maker trade.


JPY/USD…(higher = weaker JPY)


The long-end of the Japanese yield curve is at near-record steeps…




Bass’s exact positioning is unknown but he has commented on using sovereign CDS and critically has not espoused a short Japanese equity position directly – preferring to focus on the debt problems.


(h/t InformedTrades)

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