For decades, a silent engine powered global finance: Japanese capital, borrowed for near-zero rates, flooding into higher-yield markets like the U.S., Australia, and emerging economies. The “yen carry trade” wasn’t just a strategy — it was a multi-trillion-dollar force shaping everything from bond yields to currency flows. At its peak, Japanese investors held over $1.1 trillion in U.S. Treasuries, outpacing even China. Pension funds, hedge funds, central banks — all leaned on this trade to extract stable yield and fuel global risk appetite. But in 2025, the script flipped. For the first time in nearly two decades, ... (full story)