Japan

With bank financing requirements falling and a basis swap that made yen funding tough to justify for those with no need for it, volumes have stagnated in the Samurai market. But the diversity of those accessing the market is encouraging, and could be set to increase.

Japan’s public sector borrowers continue to be very well regarded by international fixed income investors in search of exposure to Japan with a modest yield pick-up over Japanese Government Bonds (JGBs).

With analysts upbeat on the prospects for Japanese corporate earnings growth — and therefore for the performance of equities — there are signs that historically underweight investors are returning to the market.