Japan To Trigger A Sovereign Bond Duration Shock
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In this short clip from Live Trading Room (Feb 20, 2025), Samantha LaDuc discusses the potential impact of a Japanese bank crisis on the yen carry trade and broader financial markets.
She highlights how the bank's crystallized bond losses could force it to sell sovereign bonds, triggering yen strength, increased volatility, and potential market de-risking.
Samantha also notes significant VIX call accumulation and warns that the market may not yet recognize the unfolding risks but could shift in the coming weeks.
Running Length: 00:09:17
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