Japanese Debt -We’re Taking a Victory Lap

By Gary Brode, Deep Knowledge Investing

We told you last night that Japan was throwing in the towel on its (approximately) zero interest rates and was raising rates to defend the yen.  I read today that earlier this month, Morgan Stanley had predicted that Japan would hold the line on its debt through all of 2023.  While it’s hard to make predictions in the market a year out, to us, this one seemed obvious:

October 22, 2022:  Mark Rossano and me talking to the NY Alternative Investment Roundtable about the inevitability of a Japanese bond default (or at least a stealth default where the yen declines so much that Japan pays their debts in worthless yen):  https://twitter.com/NYHedgeFunds/status/1583639483009748992

November 1, 2022:  Mark Rossano and me talking on OpenExchange TV about the same thing:  https://www.openexchange.tv/pro-insights/what-does-sovereign-debt-default-mean

October 26th, 2022:  Explaining to DKI subscribers on this blog the coming Japanese sovereign debt default:  https://deepknowledgeinvesting.com/sovereign-debt-defaults-japan-vs-the-bond-vigilantes-part-i/