Facing Questions Over CLOs, Japan's Biggest Buyer Explains

A businessman walks past the offices of the Norinchukin Bank in Tokyo on Friday, 6 April 2007.Photographer: ROBERT GILHOOLY
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Norinchukin Bank, the Japanese agricultural lender known for its aggressive purchases of collateralized loan obligations, has lifted the lid a little more on the bundled leveraged loans sitting on its books.

Following intensified public scrutiny of the investments in recent months, Norinchukin’s latest earningsBloomberg Terminal presentation on Wednesday included two pages to explain how it’s been piling into CLOs. That contrasts with previous statements where it usually just provided figures under the broader category of collateralized debt obligations, without giving a breakdown or narrative.