Japan in the Capital Markets 2012

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  • Japanese SSAs prepare for a more international future

    With such a large and liquid domestic market, Japan’s public sector borrowers could, if they wanted to, rely wholly on local investors. But more and more issuers are turning their attention overseas, planning ahead for the time when domestic demand diminishes as the population ages and appetite for yield recovers.

  • Japanese love for Nordic issuers stronger than ever

    Nordic borrowers have had a loyal investor following in Japan for 50 years. Today, their safe haven credentials ensure that they remain very popular issuers among institutional and retail investors in Japan in a number of currencies and formats. To discuss the opportunities presented to them by the Japanese investor base, a number of borrowers gathered at the EuroWeek Nordic issuers roundtable in Stockholm in September.

  • Japan in the Capital Markets Sep 2012, Full PDF Download

  • Japan faces up to challenges at home and abroad

    Many countries share Japan’s problems of an ageing population, a vast public debt and the consequent need for urgent fiscal consolidation. Many also suffer from Japan’s current dependency on imported fuel and strength of currency. The touble is that no other country has all these problems at the same time. Fortunately the Japanese are masters at always looking on the bright side of life.

  • Japan cannot get enough of Australia

    The love affair between Australian issuers and Japanese investors shows no sign of cooling off. Bank borrowers have felt the love more than most, diversifying their investor base while locking in rock-bottom Japanese rates.

  • Japan Airlines props up misfiring equity market

    Thank goodness for the JAL IPO. Without it Japan’s equity market would have been a pretty miserable place this year. However, with funding costs minimal, the yen strong and overseas assets cheap, conditions for outbound M&A are improving, meaning equity-financed takeovers could provide much needed dealflow.

  • Expanding yen product menu attracts global issuers

    Borrowers looking to access the yen market have an increasingly broad menu of options to choose from, ranging from JBIC-guaranteed Samurai bonds (for some sovereigns) through to unguaranteed bonds targeted at institutional or retail accounts. There is also a new option available in the form of Pro-Bond listed issues, while in the retail market Uridashi issuance remains as popular as ever. Volumes in this market continue to be robust. Issuance reached ¥2.1tr in 2011, according to data provided by Daiwa, which was on a par with 2010 and up strongly from about ¥1.5tr in 2009. The market is also healthily diversified from a geographical perspective, with Europe accounting for 29% of issuance to date in 2012, followed by Australia (23%), Korea (22%) and the US (20%). To describe their experience in these different markets, a cross-section of borrowers exchanged their views in the EuroWeek yen issuance roundtable.

  • Corporate volumes impress but more variety needed

    Japanese overseas debt issuance is hitting new heights as the irresistible economics of the basis swap combine with Japanese companies’ desire to expand at home and abroad. Volumes are set to grow further still as the electric power companies begin to return to the markets after an enforced absence following the earthquake and tsunami.

  • Core for the core: Japan’s crucial role in SSA funding

    Talk to any of the world’s leading SSA borrowers and they will all tell you that the Japanese investor base is an extremely important — in some cases the most important — source of consistent demand for their bonds. Aside from its size, the Japanese investor base is one that is available to international issuers across a range of currencies, maturities and structures; and it is one that is available in institutional and retail format. To discuss how they access this rich source of demand, a number of the world’s best-regarded SSA borrowers gathered at this virtual roundtable to compare notes about their experience of accessing the Japanese investor base.

  • Cheap pricing and ideal maturities tempt Koreans

    South Korean issuers have been a mainstay in Japan’s bond market for years, but their reliance on yen funding is only rising. The Samurai market, in particular, is offering increasingly large funding for Korea’s policy banks, commercial lenders, and even some corporations.

  • Banks looks to exploit relative positions of strength

    Nomura’s travails in Europe have not put Japan’s banks off their foreign development strategies. Overseas loan balances are growing to counter weak domestic demand and margins. Meanwhile, rules on capital requirements due for implementation in 2013 mean they will need to issue new types of subordinated debt over the next six months.

  • Banks keep Samurai market going as SSAs stay away

    While international sovereigns, supranationals and agencies have struggled to make the maths work, financial institutions have had more success in the Samurai and Uridashi markets this year. Meanwhile, yen issuers have an alternative to consider: the Tokyo Pro-Bond market.

Publisher: Oliver Hawkins

Telephone: +44(0)20 7779 7304

Commercial director of events: Daniel Elton

Telephone: +44 (0)20 7779 7305

 

Publisher, special projects: Ashley Hofmann

Telephone: +44 (0)20 7779 8740