Steve Kuhn Likes Japan's "Shame Index" As Corporate Governance Improves

Steve Kuhn of Pine River Capital Management, a $15 billion relative value hedge fund, likes Japan.

Kuhn formerly traded Japanese convertible bonds on the night desk at Citadel in Chicago for three years before joining Pine River. “I know the space well,” he said, as he explained why he liked Japanese stocks on a relative value basis when compared to government bonds issued by the island nation.

Steve Kuhn on Japanese bonds vs stocks

Kuhn modeled the value of the Japanese ten year bond by converting it into a “stock,” painting a picture of what it would look like.  If the Japanese ten year bond was a stock it would be trading at 220...