A Record $85 Billion Japan Bond Frenzy Is About to Reverse
- Firms issued a record 9 trillion yen of bonds this fiscal half
- Windfall for arrangers is set to fade as tax hike also looms
This article is for subscribers only.
Japan’s corporate bond bankers have been racking up underwriting fees from a record frenzy of note sales. They now face leaner months ahead.
Lured by ultra-low borrowing costs, companies sold 9.2 trillion yen ($85 billion) of notes in the first six months of the fiscal year started April 1, the most for any half on record. But issuance may slide to about 4 trillion yen in the second half, according to Daiwa Securities Co. That would be the lowest in four years.