Wednesday, Aug 22, 2007
The impact of those retail investors repatriating their funds is likely to be much larger than that which has been seen so far.
FT.com: Forex volatility threatens carry trade
Mr Sasaki estimates Y7,000bn ($61bn, €45bn £31bn) in yen short positions through margin trading, day traders bought back yen to the tune of Y3,800bn in just one week. big question is what the large number of Japanese investors who have bought investment trusts or uridashi bonds denominated in dollars high-yield currencies will do.these investors, who have generally invested surplus funds, have stood firm.US interest rates start to fall sharply and the dollar plunges as some believe will happen even those investors could choose to redeem.The impact of those retail investors repatriating their funds is likely to be much larger than that which has been seen so far.As one banker says:Japan is the provider of the world’s liquidity So the unwinding of that will have a big impact.
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
No comments have been submitted.
Be the first person to add your comment by completing the form below.