JapanÆs overseas investments stable amid subprime chaos

For Wall Street, the City of London and the traders in Hong KongÆs Exchange Square, the fallout from AmericaÆs subprime mess has led to a crisis of confidence that has frozen liquidity in the worldÆs banking system. Value-at-risk protocols, fund redemptions and margin calls have forced hedge funds and other investors to cut their most liquid investments. Their first stop has been in the yen carry trade.The ôkimono traderö has also been hit by margin calls. JapanÆs often-highly leverag…