The Yen Carry Trade Unwound

This chapter explores the evolution and historical context of yen carry trades, particularly their surge following Japan's negative interest rates in 2016. It examines the recent unwind of these trades amidst shifting economic signals and highlights the ripple effects across various portfolios due to risk management practices. Additionally, the chapter discusses the complexities of market volatility and the interconnectedness of asset dynamics in the current macroeconomic landscape.