Soon, Japan Will Wave Goodbye To Cheap Capital

Japan's debt-addicted business sector is facing a severe financial hangover. To help meet their huge appetite for capital, notes economist William P. Sterling of Merrill Lynch Economics, Japanese corporations raised some $220 billion through convertible bonds and warrant bonds in recent years. And the bulk of those bonds and warrants will mature in the next three years and become eligible for cash redemption if equity-conversion rights are not exercised.

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