American-Made Junk CLOs Now Being Served in Yield-Starved Japan
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Bankers have a proposition for Japanese investors: Why don’t you put your money into bundles of junk-rated U.S. loans?
It’ll be a classic win-win, as the thinking goes. For Japanese institutions tired of decade after decade of paltry returns on Japanese government debt, they’ll earn higher yields; and for the riskiest U.S. companies, they’ll get access to a cheaper source of financing.