“Yen Crash + Soaring U.S. Rates: Japan’s Insurers Just Got Wrecked!”#JapanInsurance
japanese insurance companies have taken a hit
us Treasury investment losses have quadrupled compared to last year why it’s a double whammy
the weak yen and rising US interest rates these insurers poured money into American bonds to
escape Japan’s near zero yields but hedging against the falling yen has become insanely
expensive slashing returns in some cases hedging makes the yield on a 10-year US Treasury
even lower than a 20-year Japanese bond add the surge in US bond yields which drags
down prices and boom big losses it’s not just accounting losses either if they need to
sell early those paper losses become very real this isn’t just a Japan problem back in
May Taiwan insurers cause their currency to spike by dumping dollars something similar
could totally happen in Japan if the Bank of Japan raises rates and investors rush
home we could see a yen surge and ripple effects across global markets heads up
volatility might just be getting started
“Yen Crash + Soaring U.S. Rates: Japan’s Insurers Just Got Wrecked!”#JapanInsurance
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