Nomura Says Buy Tepco as Fukushima’s Cost Cap Seen
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Nomura Holdings Inc. is urging investors buy Tokyo Electric Power Co. bonds after a report that Japan’s government plans to cap the utility’s clean-up costs from the wrecked Fukushima nuclear plant.
The yield premium on Tepco’s 1.155 percent notes due in 2020 fell to 343.4 basis points over government bonds on Dec. 13, its lowest in a month, and down from a record of 699 in September 2011. That compares with an average spread of 461 basis points for debt worldwide with the same B level credit rating, the least since February 2011, according to Bank of America Merrill Lynch index data.