Foreign issuers prove a strong draw in Japan

Despite the dire state of the Japanese economy, yen-denominated issues have maintained their popularity, providing borrowers useful diversity and a domestic investor base hungry for yield.

       
Stefano Ghersi

In Japan the economy continues to sink towards recession, banks struggle under the weight of bad debts and companies edge towards painful restructuring. Yet the primary market for yen-denominated bonds, both samurai and Euroyen, is still in rude health. International issuers, corporates and governments, are turning to these markets as an important source of funds, attracted by ultra-low interest rates, strong demand from retail buyers in Japan, and the low risk of the yen strengthening against major currencies.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access