The RMB: an "insanely convex trade"

China is trying to avoid the fact that its growth is chained to an ever more irrational load of debt and that the debt-intensity of growth becomes higher every year. Brian McCarthy manages a fund predicated on the idea that, far from rebalancing, China sees no other political options and will keep piling on debt until it hits a wall. That wall will entail a sharp devaluation of the RMB.