Carry Trade Chaos

I’ve already covered USD/JPY’s change in character and why: Prime Minister Takaichi’s dovish, debt-financed stimulus push, plus snap February 8 elections to consolidate her power and lock in her agenda, has sent Japanese yields surging to multi-decade highs. This narrows the yen carry-trade advantage, that in my view, has funded much of the speculative high-beta/small-cap…