BOJ’s Expanded Bond-Buying Sees Firms Curbing Long-Term Debt
- Sales of longer company bonds fall while short debt deals rise
- Japan investor asking firms to sell seven- to 10-year notes
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Stimulus steps by the Bank of Japan this year are prompting issuance of longer debt to fall, to the detriment of fund managers chasing the extra yield on such securities.
Sales of company notes due in more than five years have dropped 38% in the fiscal year started April 1. Offerings maturing in shorter periods have jumped 35% to a record, according to Bloomberg-compiled data going back to 2009. The shift comes after the BOJ decided to lengthen the maturity of corporate bonds it purchases to five years from three years.