The Yen Crisis and What It Means for Your Portfolio 🦖

The Yen Crisis and What It Means for Your Portfolio 🦖

Forty five Japanese companies have already gone under this year with “weak yen” written on the bankruptcy form, yet most Singapore investors still talk about the yen like it is a cheap holiday. When hedging products are designed to switch off once the yen moves past a certain level, the very tool that was supposed to protect the importer can become the fuse for a currency spiral.

If your Japan exposure sits inside a REIT, a fund, or a “high yield” product, the real risk is not just price volatility, it is what happens to your Singapore dollar income once those hedges knock out and managers still quote you yields in yen. Before you decide that 6 percent on a Japan asset looks attractive, you need to know exactly how that distribution gets converted and who is bearing the currency risk when USD/JPY lives above 162.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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When hedging products are designed to switch off once the yen moves past a certain level, the very tool that was supposed to protect the importer can become the fuse for a currency spiral.\nIf your Japan exposure sits inside a REIT, a fund, or a “high yield” product, the real risk is not just price volatility, it is what happens to your Singapore dollar income once those hedges knock out and managers still quote you yields in yen. Before you decide that 6 percent on a Japan asset looks attractive, you need to know exactly how that distribution gets converted and who is bearing the currency risk when USD/JPY lives above 162.</body></html>","htmlText":"<html><head></head><body>\n<img data-align=\"center\" src=\"https://community-static.tradeup.com/news/f7d6389743d61f49ed6cb7bc33b62235\" tg-width=\"1920\" tg-height=\"1080\">\nThe Yen Crisis and What It Means for Your Portfolio 🦖\nForty five Japanese companies have already gone under this year with “weak yen” written on the bankruptcy form, yet most Singapore investors still talk about the yen like it is a cheap holiday. When hedging products are designed to switch off once the yen moves past a certain level, the very tool that was supposed to protect the importer can become the fuse for a currency spiral.\nIf your Japan exposure sits inside a REIT, a fund, or a “high yield” product, the real risk is not just price volatility, it is what happens to your Singapore dollar income once those hedges knock out and managers still quote you yields in yen. Before you decide that 6 percent on a Japan asset looks attractive, you need to know exactly how that distribution gets converted and who is bearing the currency risk when USD/JPY lives above 162.</body></html>","text":"The Yen Crisis and What It Means for Your Portfolio 🦖 Forty five Japanese companies have already gone under this year with “weak yen” written on the bankruptcy form, yet most Singapore investors still talk about the yen like it is a cheap holiday. 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