Japan Bank to Overhaul Investments as Wrong-Way Rate Bets Trigger Bond Losses
- Bank’s losses ballooned after it misjudged interest rates
- Norinchukin plans to sell off foreign bond holdings gradually
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Norinchukin Bank will consider investing in a range of assets as it braces for massive losses on the sale of roughly 10 trillion yen ($63 billion) in US and European sovereign bonds.
Japan’s biggest agricultural bank will dispose of the foreign bonds gradually during the fiscal year ending March, a company spokesman said in an email. It expects a net loss of 1.5 trillion yen for the year, triple the previous estimate of 500 billion yen.