Hints and tips:
...— If all else fails, we see a heightened possibility that the authorities will intervene to support the yen if USD/ JPY were to rise much above the 150 mark....
...The basic line of thought here appearing to be that: — The change from the BoJ will herald higher JGB yields.— Higher JGB yields will encourage Japanese insurers/ pension funds to run down their FX-hedged...
...Fourth-ranked BlackRock’s iShares S&P 500 JPY Hedged ETF, attracted $4.9mn. South Korean investors can access Japan-listed funds through Korean brokerages....
...Basically, I over-worried and would have over-hedged....
...relative cheapness of hedging dollar and euro FX portfolios, much of Japan’s foreign bond investment is properly FX hedged....
...Also, it adds, repatriation should have only a small impact on the exchange rate, in that life insurers’ investments are concentrated in hedged foreign bonds, while bank investments in foreign bonds are...
...The current euro-yen exchange rate is also crucial for Japanese institutional investors, he adds, explaining: While a large part of their foreign bond holdings should be FX-hedged, the hedge ratio tends...
...USD/JPY declined 18.9% in 2008, which is the largest decline since 1987, and GBP/JPY declined 40.2%, which is the largest fall since 1958....
...with JPY and CHF....
...Money market funds immediately “broke the buck” leading to epic withdrawals from money markets into Treasuries....
International Edition