The world’s top hedge funds have begun to focus on the Bank of Japan’s reversal of its ultraloose monetary policy, shaking up the once sleepy backwater of global finance by hiring a steady flow of traders with knowledge of Japan’s sovereign debt.
The Japan Times’ Post
More Relevant Posts
-
BLΛCKPEΛRL and our Prime Hedge fund with Trading Blueprint For Corporate and Private Balance Sheets is taking trading to another level with unparalleled profits on the fastest pace and the highest returns in industry, with our highly sophisticated trading technique. Unlike most of other funds, we do not charge any kind of fees or commissions for managing your capital, we only take a smaller percentage from the profits we make, as we strongly believe is the only fair way. Working with our own funds, and with a small circle of high profile individual and institutional investors. Exceptional risk management with years of experience on the market and through some of the biggest challenges that occurred like Britain leaving EU referendum, USA elections and Covid 19 beginning, or Bank of Japan interventions as we turn
To view or add a comment, sign in
-
#BOJ large holdings of #Japaneseequities. The article discusses the Bank of Japan's (BoJ) large holdings of Japanese equities, acquired through exchange-traded funds (ETFs) as part of its unconventional monetary policy. The BoJ's investments have significantly increased in value, creating a dilemma about how to sell them without disrupting the market. Key points: BoJ's equity holdings: The BoJ acquired a significant amount of Japanese equities through ETFs between 2015 and 2021 as part of its monetary policy. These holdings have grown substantially in value due to the rising stock market. Concerns about selling: The BoJ's large equity holdings have raised concerns about the potential market impact if they were to be sold. The size of the holdings could trigger a market meltdown if not handled carefully. Hong Kong's precedent: The article references the Hong Kong Monetary Authority's (HKMA) experience during the Asian Financial Crisis, where it acquired a large amount of equities to defend the Hong Kong dollar. The HKMA successfully returned these stocks to the private sector through incentives and a gradual process. Proposed solution: The article suggests a similar approach for the BoJ, involving: Targeting individual investors: Offering incentives to individual investors with NISA accounts to acquire the BoJ's ETF holdings. Retrospective loyalty bonuses: Implementing a system of gradually diminishing discounts over time to discourage immediate selling. Gradual process: Stretching the selling process over several years to minimize market impact. Lottery system: Using a lottery system to distribute the ETFs fairly and generate public interest. Publicity: Leveraging media attention and potentially collaborating with Japanese pop stars to promote the initiative. Potential benefits: Minimal market disturbance: The proposed solution aims to minimize market disruption by gradually selling the ETFs and targeting individual investors. Boosting equity culture: The initiative could encourage more Japanese individuals to invest in the stock market, contributing to a stronger equity culture in Japan. Positive political implications: The successful execution of this plan could benefit politicians by demonstrating a shift from bank deposits to stock market investments, focusing on Japanese companies. https://lnkd.in/dX3kMtpt
How the Bank of Japan Can Turn Disaster into Triumph
https://petertasker.asia
To view or add a comment, sign in
-
Chart of the Day: Exposure and allocation to China following downwards trend in global hedge funds and global active funds. #chartoftheday #investmentmanagement #wealth #income #growth #wealthmanagement #investmentmanager #US #hedgefunds #china
To view or add a comment, sign in
-
-
Private Investigator, Freelance Intelligence Analyst, Security Consultant, AML Analyst, Risk Management OSINT Geopolitical
A 99% #Chinese Bond Wipeout Hands Hedge Funds a Harsh Lesson on #China "We trust China" they said. "We trust the Chinese market" they said. "We trust the strength of the Chinese economy" they said. Firms have long been aware of state’s role in restructurings. Yet heavy-handed position in Evergrande caught many off guard. From afar, China Evergrande Group had all the makings of a killer distressed-debt trade: $19 billion in defaulted offshore bonds; $242 billion in assets; and a government that appeared determined to prop up the country’s faltering property market. So US and European hedge funds piled into the debt, envisioning big payouts to juice their returns. What they got instead over the course of the next two years is a harsh lesson in the dangers of trying to bargain with the Communist Party. The talks are now dead — a Hong Kong court has ordered Evergrande’s liquidation, and the bonds are nearly worthless, trading in secondary markets at just 1.
To view or add a comment, sign in
-
"They want to know the logic of the trading (strategy), the source of the profit; under which situation you hold net long, or net short positions ... and the reason behind buy and sell orders." The logic of the trading strategy? Good luck with that. #trading #China #stockmarket
Exclusive: China scrutinizes quant strategies as market weakness stokes public anger - sources
reuters.com
To view or add a comment, sign in
-
💡 "Nick Codola, CFA®, CAIA®, senior portfolio manager at Brinker Capital Investments, has used these funds tactically in the past during times when the dollar is stronger, although he isn’t currently. He prefers owning currency-hedged ETFs where there’s only one currency to consider, such as for Japan or the euro zone, rather than an ETF that covers several countries and several currencies," writes Debbie Carlson. 📰 Read more of his insights on MarketWatch: #investing #wealthmanagement Orion https://lnkd.in/gYxeGP_8
A Strong Dollar Lifts Currency-Hedged Funds. There’s a Better Reason to Own Them.
marketwatch.com
To view or add a comment, sign in
-
China fast-tracks approval of large batch of ETFs - https://on.ft.com/3YYXVYp via @FT Index funds will continue to find favour with regulators for quite some time. #fundmanagement #securitiesregulation
China fast-tracks approval of large batch of ETFs
ft.com
To view or add a comment, sign in
-
Some quantitative hedge funds meanwhile were banned from placing sell orders completely starting Monday, while others were barred from cutting stock positions in their leveraged market-neutral funds. These bets, known as a Direct Market Access strategy, are believed to have amplified the recent selloff in small-cap stocks. The DMA-Swap strategy, a popular leverage and derivative strategy that helps Chinese quantitative hedge fund managers to skirt regulatory borrowing limits by having trades sit on brokers’ books, is allowing some funds to generate big returns for market neutral strategies. The DMA strategy is to hedge with CSI1000 futures contracts (IM), trading small cap stocks and add leverage to generate pure alpha. From May to October2023, IM price has been contango against spot price, with 0 or even negative hedging cost and 3.5%~4% cost of leverage. A large amount of quantitative hedge funds turned to DMA strategy. Starting with the recent Snowball products blowout, snowball products was knocking in by offsetting IM futures,which causes IM contracts to become deep backwardation. Hedging costs have skyrocketed from 0 to 15-20% more than market neutral return totaling only 7-10% annualized. These quantitative hedge funds started to reduce their positions collectively, driving small-cap stocks down with them. The vicious cycle has resulted in some of the market neutral strategies with DMA already losing 30% within 2024.#China #quants #stockmarket #leverage #smallcapstocks
China Tightens Some Trading Restrictions for Domestic and Offshore Investors
bloomberg.com
To view or add a comment, sign in