Yen Traders Are Taking Out Some Insurance on Japan's Election
UBS' Anderson Sees Complacency in Japanese Markets
This article is for subscribers only.
The same political party has run Japan for all but four years since 1955. That’s not stopping some yen traders from taking out a little bit of insurance on the outcome of the looming Oct. 22 election.
Options trading shows a noticeable gap in so-called risk reversals between two-week contracts and one-month ones, a period in which the lower-house election falls. There were similar gaps in March, when the French presidential election featured the possibility of an anti-euro candidate winning, and last October, in the run-up to the U.S. election.