“On July 16, the stock markets and many other risky asset markets reached their peak. For whatever reason, these asset markets began to sell off. As the selling continued, recent entrants to the YCT [yen carry trade] saw their assets fall, and to be clear, that’s almost always the driver of unwinds. But worse, the yen started to slowly rise. That was the beginning of unwind,” said Andy Constan, CEO of Damped Spring Advisors, in a detailed yen carry trade explainer on X.
