The structure of the Japan trade was a two-thirds allocation to JGB bond-market optionality and one-third betting alongside the Bank of Japan that it would weaken the yen; when Abenomics took the yen from 85 to 120, the bond third lost money but the currency third made many multiples, netting the fund roughly 250%.

factualpending

Speaker

Kyle Bass

Evidence Quote

we took twothirds of the money in the fund and we bought bond market optionality right in the in JGBs. I took onethird of the money and I bet with the Bank of Japan on their ability to weaken their currency

Source

Global Macro Investing And Geoeconomics With Hedge Fund Investor Kyle Bass | Hoover InstitutionHoover Institution
Created: 6/18/2026, 2:17:47 PM

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