A Japanese Tsunami Out Of US CLOs Is Coming
Zero Hedge -

Authored by Shannon McConaghy of Horseman Capital

Japan is at the very centre of the global financial system. It has run current account surpluses for decades, building the world's largest net foreign investment surplus, or its accumulated national savings. Meanwhile, other nations, such as the US, have borrowed from nations like Japan to live beyond their own means, building net foreign investment deficits. We now have unprecedented levels of cross-national financing.

Much of Japan's...

In related news