Negative Swap Rates Wreck Hedging in Blow for Japan Loan Demand

  • Japan loan growth slowed to weakest in three years in March
  • `Swaps aren't functioning properly,' Credit Agricole says

Negative rates for swapping interest payments are hindering the ability of corporate borrowers to hedge their liabilities -- another way in which the Bank of Japan’s unorthodox attempt to revive lending could backfire.

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