Japan’s US Corporate Bond Sell Off Brings Risks: Credit Weekly
- Japanese investors sold a net record of US corporate debt
- Repatriation of capital could lead to more markets volatility
Visitors are silhouetted as they look out of windows at an observatory in the central business district of Tokyo, Japan.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
Credit managers are nervously awaiting data this coming week that will show whether a Japanese pullback from US corporate bonds in August was a blip or the beginning of a trend.
Government bond yields in Japan have risen in recent months as speculation grows that the nation’s central bank will step back from its super easy monetary policy. That may spur investors there to move money home to take advantage of higher returns.