Fighters of BOJ Missing Safest Returns Since 1993
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Investors that chose to fight the Bank of Japan’s effort to drive down sovereign bond yields are missing out on the best risk-adjusted returns in two decades.
JGBs returned 2.6 times the market’s volatility this year on an annualized basis, poised for the best year since 1993, according to data compiled by Bloomberg and the European Federation of Financial Analysts Societies. BOJ Governor Haruhiko Kuroda has said about 7 trillion yen ($68 billion) of monthly debt purchases will shrink Japan’s risk premiums.