It's time now for [music] the big picture. So, let's welcome in Michelle Gibli, director of international equity research and strategy, Schwan Center for Financial Research. Thanks so much for your time this morning, Michelle.It's so nice to see you. Happy Friday. Look, we started this week off with a more hawkish tone coming from the governor of the BOJ and that put very much the carry trade back in the spotlight.We've seen the higher yield state side being pressured by those JGBs. I'm seeing that the expe ...

Core Insights - The demand for skilled yen currency traders has surged due to significant market volatility, prompting banks and hedge funds to aggressively recruit experienced professionals [1][6] - Major financial institutions are offering lucrative compensation packages, with some traders receiving bonuses upwards of $30 million to join new firms [1][3] - The recent hiring spree builds on a trend that began before the Bank of Japan started raising interest rates last year, indicating a sustained interest in yen trading expertise [1][3] Group 1: Market Dynamics - The yen currency market has experienced its largest fluctuations in years, leading to widespread losses among market participants [1][6] - As of mid-March, market participants were betting on a flattening yield curve due to continued interest rate hikes by the Bank of Japan, but recent developments have caused the curve to steepen dramatically [6][10] - The yield premium between Japan's 30-year and 5-year government bonds has reached its highest level since May 2002, reflecting increased investor caution [6] Group 2: Talent Acquisition - Hedge funds are actively seeking to hire traders who were displaced during the market turmoil in August, indicating a willingness to give second chances to experienced professionals [4] - Notable recent hires include Masahiko Maihara from Deutsche Bank to Capula Investment and Shumei Kameyama from Barclays to Dymon Asia Capital, both firms with extensive experience in yen-related derivatives [3] - The competition for talent is so intense that some firms are willing to pay significant sums to attract top traders, highlighting the scarcity of qualified candidates in the market [1][3] Group 3: Future Outlook - There are indications that further market turbulence may occur, particularly due to uncertainties surrounding U.S. tariff policies and potential capital flows into Japan [9] - Increased long-term bond yields are expected to drive Japanese investors, such as life insurance companies and pension funds, to consider domestic bonds over U.S. options [10] - The ongoing geopolitical dynamics and inflationary pressures are likely to create more trading opportunities in the Japanese market, as noted by industry experts [10]