Japan's Norinchukin Bank, often called the country's CLO whale, plans to sell $63 billion in U.S. and European government bonds by March 2025 to cover massive losses.

We made a non-consensus prediction last October, when the market was still suffering from the March 2023 bank failures, which had total assets that exceeded the global financial crisis, prompted the latest Fed intervention, and set the record low for the past 16 months for the market. We predicted that, because the Fed had ...