Japanese Bank's Hunger for CLOs Shows No Signs of Abating
- Norinchukin anchored 10 of this year’s 15 new issues in Europe
- ‘No signs’ of Japanese bid pulling back anytime soon: Teeuwen
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A Japanese lender has this year bought the lion’s share of top-rated bonds that are backed by pools of European corporate loans, propping up the region’s market for collateralized debt obligations amid a very difficult first quarter.
Norinchukin Bank, starved of yields thanks to Japan’s negative interest rates, is expected to keep buying AAA-rated tranches in Europe until at least the summer, even as Japanese authorities scrutinize how the region’s financial institutions operate in the global CLO market.