Yen Carry Trade Unwind and Global Liquidity Risk

Treasury Secretary Bessent's currency intervention tactics (selling euros, borrowing against Treasuries) signal cracks in dollar hegemony. FIMA facility is a pawnshop, not a swap line. Yen weakness could trigger a broader risk asset unwind, directly impacting VC fundraising, private credit liquidity, and exit windows. This is a new systemic risk that my audience must monitor as a leading indicator for capital formation conditions.