Why M&G's Leaviss has stopped shorting the yen

Jim Leaviss, head of retail fixed income at M&G, has removed his short position on the yen in his £688m Global Macro Bond fund following the dramatic sell-off in the Japanese currency.

The yen hit a four-year low against the US dollar of ¥99.01 last week, but many bond managers are continuing to aggressively short the currency in the view it will depreciate further. Hedge fund managers including George Soros are also among those betting against the currency, with shorts on the yen last week reaching a five-year high, according to the US Commodity Futures Trading Commission. As reported in this week's Investment Week a number of UK strategic bond managers are short the yen, including Schroders' Gareth Issac, who said the yen is trapped in a structural bear market. ...