J. Kyle Bass, managing member at Hayman Capital Management, thinks that Japan’s debt crisis has passed the point of no return. Bass sees evidence — such as Japan’s balance of trade, its high turnover of finance ministers, and the erosion of the of Bank of Japan’s independence — that the country is reaching the end of a 70-year debt supercycle.
In this interview with Professor Kenneth M. Eades from the University of Virginia Darden School of Business, Bass explains why he thinks Japan is entering “its final checkmate phase of the chess game”:
Bass made a name for himself as a hedge fund manager when he deviated from the prevailing market sentiment by betting against subprime mortgages and their derivatives before the collapse of the U.S. housing market in 2007. Recently, he made a number of bearish predictions about sovereign debt in the eurozone and elsewhere, including Japan, that generated headlines.
Bass has also been profiled in a Harvard Business School case study of Hayman Capital Management and its views on Japanese debt.
At the 66th CFA Institute Annual Conference in Singapore, Bass will be discussing global investment opportunities. You can register to attend the conference and hear from him in person. Follow this blog for more speaker updates as the event draws closer.