Financial Times (May 6)
“The yen may very well experience further depreciation pressure over the coming weeks… we are in a complex and volatile period for global markets.” Beyond that, however, “there are a number of paths to recovery for the yen…. Investors can anticipate a rebound in the yen over time and should consider owning this haven asset as a hedge against global recession and other tail risks.”
Tags: Anticipate, Asset, Complex, Depreciation, Global markets, Haven, Hedge, Investors, Pressure, Rebound, Recession, Recovery, Volatile, Yen
Bloomberg (October 5)
“Even though polls show a receding chance of Donald Trump becoming U.S. president, money managers wary of public opinion being proved wrong are increasingly looking toward Japan for an ideal hedge.” If Trump somehow pulls off a victory, it “could send cash flooding into the yen, which acts as a haven.”
Tags: Haven, Hedge, Japan, Money managers, Polls, President, Public opinion, Trump, U.S., Yen
Bloomberg (February 12)
The Bank of Japan’s “decision to adopt negative interest rates has failed to rein in the currency’s advance.” In part, this is because money managers are advising wealthy families to favor the yen amid the turmoil in global financial markets. As a result, the yen is outperforming “all 31 other major currencies this year as Japan’s current-account surplus makes it attractive for investors seeking a haven.
Tags: Attractive, BOJ, Currency, Current-account, Haven, Interest rates, Investors, Japan, Money managers, Outperforming, Turmoil, Wealthy, Yen
Financial Times (January 9)
“Investors looking for haven assets are increasingly having to pay up for the safety they provide as the volume of negative-yielding eurozone government debt has swollen to a record €1.2tn.” The change to assets you effectively pay to hold is unprecedented. At €0 in June 2014, this negative-yielding debt now accounts for roughly one quarter of outstanding eurozone sovereign debt, mostly “concentrated among the short-dated debt of core eurozone countries.”
Tags: Assets, eurozone, Government debt, Haven, Investors, Negative-yielding, Safety
Financial Times (March 6)
In times of trouble, investors flock to the U.S. dollar. Or did. Despite turbulence in the Mideast, the Financial Times reports, “Hedge funds and forex dealers are betting record amounts against the dollar, reflecting a growing belief that the US currency has lost its haven appeal and that eurozone interest rates will soon rise.”
