Historic BOJ Move Lifts Short-Term Costs for Japanese Firms
- Deals in April show issuers paying more than before BOJ move
- Investors seeking higher premiums: Asset Management One’s Kato
Japan’s central bank said on March 29 that it plans to buy corporate bonds ¥75 billion ($490 million) in May.
Photographer: Shoko Takayasu/BloombergThis article is for subscribers only.
Many Japanese companies are paying more to raise money from shorter-tenor notes as the Bank of Japan prepares to wind down corporate bond purchases as part of its historic move away from ultra-accommodative policy.
Sumitomo Mitsui Trust Panasonic Finance Co. on Friday sold three-year yen notes at a much higher premium than corporate bonds offered before the central bank scrapped the world’s last negative interest rate on March 19. Top-rated Toyota Finance Corp. last week priced a three-year note at a significantly wider spread than lower-rated Sony Group Corp.’s deal in March.