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Connor Davis | 2 months ago (raw) | root | parent | reply | flag +2 
 What I don't understand is how a move to 0.25% is triggering the trade to unwind. Is the carry trade based on the delta between US rates and Japanese rates? If so there is still a pretty big difference between the US and JPY rates so why now? I'm sure there is nuance I'm missing.
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Benewing | 2 months ago (raw) | root | parent | reply | flag +1 
 I think the nuance you’re not appreciating is the scale. It’s not a trade between Yen and USD, it’s between Yen and US stocks. Even a small increase in your borrowing cost makes a big difference if the position size is big enough.
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XeqT Monetary Freedom (∞/21M) + (₿+⚡) = 🧡 | 2 months ago (raw) | root | parent | reply | flag 
 The change might seem insignificant, but it basically means that the borrowing cost more than doubled.

It's akin to being able to pay $2,000 a month for your mortgage, but now, with a rate change, your mortgage is $4,000 a month.