Kyle Bass on Japan’s Debt Crisis: This Is How It Falls Apart


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.

This entry was posted in Fixed-Income Management, Investment Topics and tagged , , , . Bookmark the permalink.

One Response to Kyle Bass on Japan’s Debt Crisis: This Is How It Falls Apart

  1. Ward says:

    He misses the greatest point off all
    If Japan were to admit its debts are unpayable
    In say 12/18 months time, the world would be plunged into a monumentle depression
    Because of this the powers that be,
    China USA Europe and Japan
    Will dream up some fudge and we all will go on with our debt fuelled dreamy lives
    The western world is bankrupt
    Each day that passes without a very combined effort from politicians and the people of the countries of the debt ridden ,
    We will all pay a very heavy price indeed.
    Take the uk as a example
    Our bloated overpaid public sector (around 33%
    Of the workforce),
    Should all be forced to take a 30% cut in wages
    Also why tax them , deduct all relevant taxes before they are paid, it’s insane .
    Any one who opts to take the route of working as a cival servant does so for one reason ,
    And that is because they need the comfort of knowing they are going to be more financially safe thea. Trying to make money going it alone.
    The people who try to make themselves often find , that the risks they take each and every day of the week keeps the people who haven’t got a risk bone in there body
    This cannot go on
    People will not take the risks
    Governments will lose the income off these people
    Wages to the servants will have to fall
    Governments will have to cut spending
    Hold on a second
    Yes this is what’s happening now
    Take away the rewards of free enterprise
    And all will suffer
    All cival servants should before they go to bed every night ,thank The Lord that there is people out there who try to go it alone ,as without them
    Cival servants would not exist

Leave a Reply to Ward Cancel reply

Your email address will not be published. Required fields are marked *