4min chapter

Swan Signal Live - A Bitcoin Show cover image

Lawrence Lepard & James Lavish | Swan Signal Live | EP 121

Swan Signal Live - A Bitcoin Show

CHAPTER

The Effects of Japan's Interest Rate Parity on the US Treasury Market

The yen has been the currency that's been used for the carry trade, right? It's been the cheapest currency to borrow in the world for 20 years. And so if people are borrowing in cheap yen and using that as part of the carrytrade, if suddenly that cost of borrow goes from zero - then it went to 50 bips on the first move. And now it's at 65, maybe on its way to one,. At the margin, admittedly, they're all still small numbers, but at the margin, that makes that borrowing more expensive. That is going to restrict liquidity. The reason they've been able to play this game, Sam often asks me, how come Japan hasn

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