‘Widow-Maker’ Trade Becomes World Beater as Japanese Bonds Sink
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The prime minister’s office, known as the Kantei, in Tokyo, Japan.
Photographer: Kiyoshi Ota/BloombergFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Ruth Carson, Masaki Kondo, and John ChengOctober 20, 2025 at 10:00 PM UTCBookmarkSave
Global bond funds have for decades been attracted — and repeatedly burned — by a trade known in Japan as the ‘widow-maker.’
The idea is simple: borrow and sell Japanese government bonds in expectation of tumbling prices, before buying them back and pocketing the difference. That strategy racked up losses for debt investors during the country’s long years of ultra-loose monetary policy. Now, it has become one of the most lucrative bets in the global bond market.
Source: Original