PUT OPTIONS ON JGB is Kyle Bass’s favorite trade.
UPDATE: IMF Warns Japan Debt Could “Quickly Become Unsustainable”
— IMF warns that Japan’s debt could “quickly become unsustainable” if JGB yields rise
— Says market concerns could trigger sudden spike in risk premiums
— Yield spike could trigger Japanese withdrawal of liquidity from global capital markets
(Adds more details from report, background throughout.)
By Takashi Nakamichi
Of DOW JONES NEWSWIRES
TOKYO (Dow Jones)–The International Monetary Fund warned in a new report that market concerns over fiscal sustainability could trigger a “sudden spike” in Japanese government bond yields that could “quickly” render the nation’s debt unsustainable as well as shake the global economy.
The fund’s Japan Sustainability Report, released on its Web site Nov. 23, serves as a fresh reminder to Tokyo policymakers that the international community is already worried about fallouts from Japan’s potential fiscal problems, after debt problems in some European economies evolved into a continent-wide crisis.
via UPDATE: IMF Warns Japan Debt Could “Quickly Become Unsustainable” – WSJ.com.