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In a Bond Market Gone Bonkers, Japan Is the New ‘High Yielder’

  • Investec’s Silberston is buying dollar-hedged Japanese debt
  • System can’t survive for long at such low yields: Silberston
Japan's New Emperor Naruhito Ascends Chrysanthemum Throne
Photographer: Kiyoshi Ota/Bloomberg
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In the increasingly topsy-turvy world of bonds, Japan’s notoriously low yields are starting to look high for some investors.

While the Asian market is historically identified with poor yields and subdued trading thanks to decades of ultra-easy monetary policy, that perception is now being upended as a frenzied global debt rally squeezes returns elsewhere. Investec fund manager Russell Silberston favors a long position in Japanese bonds, which yield better than all of Europe’s highest-rated markets.