What do you mean by " The problem is that a terrific trade can turn terrible fast if the global recession everyone foresees crystalizes, as JGBs benefit from safe heaven flows and the BoJ would likely goes ballistic."?
Hey bud, thanks! The problem with the short JGB is that it'll do very well in a non-recessionary environment. But if recession hits, global yields will drop as CBs step in and that can rip our face off if we're short!
Great Article!
What do you mean by " The problem is that a terrific trade can turn terrible fast if the global recession everyone foresees crystalizes, as JGBs benefit from safe heaven flows and the BoJ would likely goes ballistic."?
Hey bud, thanks! The problem with the short JGB is that it'll do very well in a non-recessionary environment. But if recession hits, global yields will drop as CBs step in and that can rip our face off if we're short!