Japan Bond Crisis

This is a question for people in trading, not highschool or college kids. I'm a banker and I am trying to get an idea of what your thoughts are about this because I don't have expertise in this area at all.

If Japan's JGB yields rise in a debt crisis and you only had access to products as a retail investor where would you want your money. No shorting allowed.

Also, can someone give me an idea where they think JGBD would go if this event were to take place?

I'm not really looking for people to tell me why this will not happen. I've heard that debate before and I'm really just trying to get an idea which retail investment products would be best GIVEN it happens.

Thanks guys

 
Best Response

rule of thumb...interest rates rise equities decrease.....we are seeing right now, their equity markets rising quite strongly from nov. the NIKKEI index was trading as low as 8600 rand in Nov, and is now at 10,200+, thats around 19% increase, this can be attributed to PM Abe, promising to do what it takes to get the Yen weaker, as he believes exports are the way out of this mess, (weaker yen, stox rise)...in this scenario, i would look at japenese electronic makers/auto makes, as their products should be cheaper to the outside world with weaker yen (this idea is not my own, but one I have seen....disclosure i currently have puts on the yen...)

 

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