Japan & Abenomics redux

Overnight, Japan’s central bank pushed short term interest rates into negative territory and pledged more monetary stimulus.  For a brief overview of Abenomics, please see our video below.

In contrast to the positioning we discuss in the video (short the yen, long Japan equities), many systematic hedge funds appear to have been long the yen recently.  The unwind of those positions likely contributed to the 2% decline in the yen today (that’s a very big one day move in fx land…).

[vimeo2 id=153848667 aspect_ratio=4:3 autoplay=”no”]
January 29, 2016