Japan in the Capital Markets Sept 2018
GDP has bounced back in Japan, but the country faces some stubborn problems, some long-standing — such as low inflation, consumption tax rollout and an ageing population — and some new, including an increasingly protectionist US. Philip Moore reports.
The Japanese issuer base for socially responsible investments (SRI) is growing steadily, with some borrowers adding social and sustainability bonds to the already busy green bond market. On the buy-side, an investor base well versed over many years in SRI is also taking to the asset class.
Japan’s investors are hungry for yield. The likes of the Government Pension Investment Fund and the country’s regional banks, are going farther afield and widening their scope to include emerging markets as they hunt for returns. Jonathan Breen reports.
It has been a momentous year in the yen market. Having long been seen as a very traditional and conservative part of the financial world, Japan has been embracing change.
Beset by low interest margins and a falling population, Japanese banks have looked abroad for juicier returns and have matched this with overseas funding. As Jasper Cox reports, it is a strategy that has made them vulnerable on either side of the balance sheet.
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