Tag: Risk Parity
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Japan G-Bond Turmoil Could Trigger Treasuries Selloff Now
Overview: Japan’s G-Bond Turmoil and the Potential Global Ripples Japan’s government bond market is at the center of renewed volatility, raising concerns about a broader pull on global financing conditions. A note from Citi analysts highlights a provocative scenario: risk parity funds, which allocate capital across multiple asset classes — from equities to bonds and…
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Japan Bond Turmoil: Risk Parity Funds May Sell Up to $130 Billion, Citi Warns
Overview: A Market Turmoil Unfolds Around Japanese Government Bonds Japan’s government bond market is facing heightened volatility as a wave of investor risk reassessment prompts potential large-scale selling. Citi estimates that the strain could force risk parity funds—those that balance exposure across asset classes to maintain equal volatility—to unwind as much as one third of…
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Japan bond turmoil could trigger $130B selling, Citi says
Overview: Citi’s assessment on Japan’s government bond turmoil Global markets have been watching Japan’s government bond (JGB) dynamics closely as volatility in the country’s debt market raises the possibility of broader selling pressure. In a recent note, Citi analysts suggested that turmoil in Japanese government bonds could compel risk parity funds to divest a sizable…