Bloomberg report on Japanese investors, facing ongoing negative rates domestically, are buying dollars and risk assets

  • "The presence of the Japanese as the main carry trade driver seems to be growing as they must turn to overseas investments"

Demand for higher-yielding American assets growing

  • In April, Japan's money managers bought the most U.S. corporate debt in eight years and the second-highest amount of equities in five years
  • "Japanese investors use yen to fund purchases of Treasuries or U.S. corporate bonds, for instance, to seek credit spreads and these flows are continuing," said Koichi Sugisaki, a strategist at Morgan Stanley MUFG Securities Co. in Tokyo.

Here is the link for more

Check out USD/JPY … its net more or less unchanged, even a little lower, since November last year .... Without all the Japanese money leaving yen into USD it'd have to be lower I guess?

Bloomberg report on Japanese investors, facing ongoing negative rates domestically, are buying dollars and risk assets