Leaked: Japan’s Mega-pension Fund Plows Into Stocks, Eats $50Bn Loss, Tries to Hide it Till After Election

by Wolf Richter
Wolf Street

Benefiting hedge funds and banks that had front-run the fund.

Abenomics is facing elections on July 10 for the less powerful Upper House.

But Abenomics hasn’t fared very well. It engaged in the biggest (relative to the economy) money-printing and bond buying extravaganza the world has ever seen. The securities the Bank of Japan has bought, now at ¥426 trillion ($4.15 trillion), amount to 85% of GDP. About $8 trillion in Japanese Government Bonds sport negative yields. Even the 30-year yield is just about zero. The JGB market, once the second largest government bond market in the world, has frozen. The BOJ’s primary dealers are in revolt. Some have already pulled out.

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