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Japan is encouraging the use of covenants in corporate bonds to provide investor protection and allow lower-rated companies to enter the debt market. A working group led by the Japan Securities Dealers Association has agreed to apply Change of Control clauses and reporting covenants on bonds rated BBB+ and lower, while maintaining flexibility. The move comes after investors expressed frustration with the lack of protection during a debt default by Unizo Holdings. The goal is to diversify the market and provide more investment opportunities. [Extracted from the article]

Invesco Ltd. is looking to expand its presence in Japan and other foreign markets to take advantage of strong foreign demand for high-yielding US corporate bonds and decreasing hedging costs. The firm's U.S. investment grade team has raised over $30 billion from Japanese buyers in the past decade and continues to attract new clients. In addition to Japan, Invesco sees opportunities in Taiwan and the Middle East for US investment grade fixed income. Factors driving demand include high bond yields, easing recession concerns, potential rate cuts in the US, liquidity in the US market, and diversification in corporate credit. [Extracted from the article]

Sumitomo Pharma Co. plans to cut about 400 jobs at its US subsidiary due to concerns about its credit quality. The company cited a difficult business environment and the failure of three key drugs to meet revenue goals as reasons for the job reductions. Sumitomo Pharma's stock has also declined this year, while its peers have seen gains. The company's fiscal third-quarter revenue dropped after the expiration of US patents on its anti-psychotic drug Latuda. Rating & Investment Information Inc. will be monitoring the company's relationship with its parent firm, Sumitomo Chemical Co., as the group's overall performance deteriorates. [Extracted from the article]

Hitachi Ltd. has sold Japan's largest digital corporate bonds in a growing market. The five-year green bonds were priced at a coupon of 0.598% and were purchased by Nippon Life Insurance Co. as well as other life insurers, central public institutions, and corporations. This sale is part of a trend in Japan's corporate debt market towards more innovative issuance, including the use of blockchain technology. Hitachi is open to selling digital securities again in the future. [Extracted from the article]

Japanese investors' pullback from US corporate bonds in August has raised concerns among credit managers about the potential impact on global market liquidity and volatility. Speculation that Japan's central bank will scale back its easy monetary policy has led to rising government bond yields in Japan, prompting investors to move money back home for higher returns. The reduced demand from Japanese investors could result in higher borrowing costs for US corporations, which are already facing high financing costs. However, some experts believe that the impact may be mitigated by low issuance levels and market share erosion to private credit. [Extracted from the article]

Caution about the impact of the war may weigh on issuance of longer-dated yen corporate bonds, according to some managers at the brokerages surveyed. (Bloomberg) -- Japan's biggest brokerages expect yen corporate bond sales to slow in the fiscal second half started this month after a deal rush in the first half, as rising borrowing costs begin to discourage potential issuers. Japanese corporate bond yields have risen to the highest since 2011 as investors bet that the central bank may end its super-loose monetary policy in the months ahead. [Extracted from the article]

(Bloomberg) -- Japan Investment Adviser Co., the first unrated company in the nation to sell publicly offered bonds, is preparing for rising costs by seeking a credit grade. The aircraft leasing company has already contacted two rating firms, and the firm is seeking information about what points are important in order to obtain a credit assessment, Sugimoto said. [Extracted from the article]

"Given the current economic indicators and the outlook for BOJ monetary policy, we see a scenario in which interest rates are more likely to rise rather than fall", said Hiroshi Oikawa, head of Japan DCM Syndicate at BofA Securities Japan Co. "Issuers are looking to procure financing before that." (Bloomberg) -- Japan is one of the few major markets where corporate bond sales are barreling ahead as issuers grab what may be their last opportunity to lock in low borrowing costs. [Extracted from the article]

That made up a big part of Japan's record foreign bond outflows in 2022, which sent a chill through holders of everything from US government bonds to Brazilian debt, where the country's funds are big investors. (Bloomberg) -- Investors worried about the Bank of Japan's threat to global markets have a chance to hear from those on the front lines in coming weeks. [Extracted from the article]

"We believe that we were able to stimulate the maximum possible demand" from investors given the current market conditions, Hiroyuki Usami, a Jera spokesperson, said in an email. (Bloomberg) -- Power company Jera Co. sold 96.5 billion yen ($709 million) of hybrid bonds, an amount smaller than the upper limit flagged by the company, as Japan's credit market has softened. [Extracted from the article]

Read More: Violent Market Swings Await Day the BOJ's Yield Anchor Lifts Monetary policy makers insist that the BOJ is nowhere close to even a modest adjustment to its ultra-easy policy. (Bloomberg) -- Investors digesting tumult in British bond markets in recent weeks should keep an eye on Japan, home of some of the world's biggest international investors. BMO's Davis Warns of Japan as Next Potential Bond "Hurricane". [Extracted from the article]

"It's crucial to price deals quickly when rates are moving every few hours", said Junko Takahashi, senior director of the treasury and finance accounting department at JICA, which regularly sells bonds in both the domestic and overseas markets. (Bloomberg) -- A feature that long set Japan's credit market apart internationally and frustrated investors may finally be starting to change. [Extracted from the article]

"It's crucial to price deals quickly when rates are moving every few hours", said Junko Takahashi, senior director of the treasury and finance accounting department at JICA, which regularly sells bonds in both the domestic and overseas markets. (Bloomberg) -- A feature that long set Japan's credit market apart internationally and frustrated investors may finally be starting to change. [Extracted from the article]

It will consider raising funds through vehicles including ESG bonds and loans in the future though there are no specific deals planned after the green bond sale, Shibata said. (Bloomberg) -- Japan Post Holdings Co. is planning a yen green bond sale that would be its first corporate note deal since the mammoth postal firm was formed in 2007 as part of a privatization move. [Extracted from the article]

Japan's debt markets are becoming more dysfunctional as the BOJ continues with its yield-curve control policy despite other central banks shifting to higher rates. Yen company note yield premiums have jumped 9 basis points to 46 basis points in 2022, the highest in more than a year. (Bloomberg) -- The volatility in Japan's credit market that forced several issuers to shelve sales is igniting debate about whether to shorten marketing periods to help deals get done. [Extracted from the article]

(Bloomberg) -- Risk aversion, the likes of which hasn't been seen in recent decades, is slamming Japan's usually staid corporate bond market as climbing yields and the yen's plunge to a 20-year low limit debt sales to some of the safest, most conservative issuers. And the yen's tumble, triggered by expectations that Japan's debt yields will lag the surges in overseas counterparts, has worsened a jump in import costs. [Extracted from the article]

And the yen's tumble, triggered by expectations that Japan's debt yields will lag the surges in overseas counterparts, has worsened a jump in import costs. (Bloomberg) -- Risk aversion, the likes of which hasn't been seen in recent decades, is slamming Japan's usually staid corporate bond market as climbing yields and the yen's plunge to a 20-year low limit debt sales to some of the safest, most conservative issuers. [Extracted from the article]

(Bloomberg) -- A tumbling yen is adding to volatility for Japan's corporate bond market after rising yields already forced more than a dozen companies to shelve issuance plans. "As a result of Kuroda's warning, it's becoming more difficult to invest in corporate bonds", said Masayuki Tsujino, senior fund manager at Asahi Life Asset Management Co. "Kuroda had said that a weak yen would benefit the corporate sector, but his new comments triggered doubts about whether the BOJ would be able to continue with its loose policy.". [Extracted from the article]

This article discusses the history of toilet paper, highlighting the controversy and skepticism surrounding its introduction in the 1850s. While Joseph C. Gayetty's Medicated Paper was the first commercial toilet paper in America, the Chinese had been using paper for this purpose since the 2nd century. The article also mentions the use of alternative materials such as sheep's wool, leaves, linen, and cloth in Western countries. Despite initial mockery from the medical establishment, toilet paper eventually gained popularity and spawned numerous copycat products. The article concludes by mentioning the modern advancements in toilet technology, such as the Washlet in Japan, which may potentially render traditional toilet paper obsolete. [Extracted from the article]

Positive figures mean optimists still outnumbered pessimists, but the survey likely under-represents concerns over the omicron variant as close to 80% of companies had responded by Nov. 29, only days after omicron was flagged as a variant of concern. (Bloomberg) -- Japan's biggest manufacturers are less optimistic about the coming months as uncertainty over the omicron variant tempers bullishness, according to a Bank of Japan survey that likely underplays the full degree of concern. [Extracted from the article]

(Bloomberg) -- One of Japan's biggest industrial carbon emitting sectors is selling more bonds to fund green projects as utilities aim to increase renewable energy sources to meet the nation's climate goals. Hokkaido Electric Power Co. and Hokuriku Electric Power Co. are scheduled to sell their first green bonds in coming weeks, joining a gradually increasing list of Japanese utilities selling such debt. [Extracted from the article]

The article discusses the introduction of the hybrid capital market to the Japanese corporate sector. Bankers hope that the experiences companies in the U.S., Europe and other areas such as Australia have had will give Japanese corporates the confidence to take their first steps into the hybrid market. The advantage to issuers of including the mechanism is that it can make the hybrid more equity-like in the eyes of the rating agencies.

The article focuses on the performance of the Japanese corporate hybrid capital market. With momentum building in the international markets for corporate hybrids, Japan's banks and insurance companies making local investors familiar with the product and the country's economy taking off, there is a growing expectation among all parties involved in the capital markets that it is only a matter of time before Japanese corporates follow the examples of their international peers.

The article discusses the potential if hybrid securities to Japanese corporates. Every now and then a new product arrives in the capital market that is touted as the next big thing. Bankers believe that Japanese issuers should now be joining in the hybrid activity. The Japanese economic recovery has already been reflected in the bank capital market by the return of the megabanks and other financial institutions to the international markets that they had been shut out of since the late 1990s.

(Bloomberg) -- Japan's biggest bank is planning to plow about $9 billion into a new investment team that will look to buy credit, equities and alternative assets in a bid to lift investment returns. His team will manage a new investment account, separate from the bank's conventional securities portfolio, and will aim to grow assets to about 1 trillion yen ($9.1 billion) within three years, he said. [Extracted from the article]

The notes are hybrid securities with characteristics similar to stocks and SoftBank expects rating firms to treat the issuance as 50% equity, it said. (Bloomberg) -- SoftBank Group Corp. priced the biggest Japanese corporate bond deal of the year on Thursday in a sale targeted at individuals. [Extracted from the article]

(Bloomberg) -- A Japanese company is set to sell the nation's biggest-ever corporate bond this week, but it's still small compared with mega deals abroad, a reflection of the relatively sleepy local credit market. NTT's jumbo bond is taking place in a corporate bond market that's relatively small considering the size of Japan's economy, a legacy of local companies' preference for bank loans in the past. [Extracted from the article]

(Bloomberg) -- Japan's biggest private life insurer is planning to buy more U.S. corporate bonds, adding to signs that investors from the nation are continuing to find value in the asset class after their hedging costs fell. "Cheap hedging costs are still making U.S. debt attractive so we plan to continue investing in U.S. corporate bonds while being selective", said Yusuke Sorita, deputy general manager at Nippon Life Insurance Co.'s credit investment department. [Extracted from the article]

(Bloomberg) -- Borrowers are ignoring warning signals from default-risk gauges and continue to raise new debt on Europe's primary credit market ahead of a run of likely bad news during the second-quarter corporate earnings season. Europe The European Central Bank is likely to expand its 1.35 trillion euro bond purchase program by December with an extension and a top-up of 500 billion euros, according to a Bloomberg survey of economists. [Extracted from the article]

(Bloomberg) -- Japanese companies led by Tokyo Electric Power Co. Holdings Inc. are pricing on Friday the most yen corporate bonds of any day this year, as firms build cash buffers to gird against the impact of the pandemic. "We are seeing firms boost cash buffers with bond sales and that is being supported by BOJ measures.". [Extracted from the article]

(Bloomberg) -- Buying corporate bonds overseas is emerging as the top strategy for Japan's top insurers, as they look to beef-up returns in a world of depressed sovereign yields and mounting stock losses. The firm sold Treasuries and shifted to U.S. corporate bonds toward the end of the fiscal year that ended in March -- when Treasury yields fell and credit spreads widened, Okamoto said earlier this week. The average yield spread of U.S. investment-grade corporate bonds over Treasuries surged to as high as 373 basis points last month from 93 at the end of 2019, according to a Bloomberg Barclays index. [Extracted from the article]

(Bloomberg) -- Japanese utilities are among the biggest issuers of yen corporate bonds but have been absent from the green note market so far. Those firms sold 15% of the 11.4 trillion yen ($105 billion) in yen corporate bonds issued in the year ended March 31, but they haven't offered green notes yet, according to Bloomberg-compiled data. [Extracted from the article]

(Bloomberg) -- Japan's corporate bond bankers have been racking up underwriting fees from a record frenzy of note sales. "Investors are close to reaching their annual budget purchase limits as so many bonds were issued in the first half", said Takamitsu Kurokawa, managing director of debt syndication at Daiwa Securities. [Extracted from the article]

More than $9 trillion of bonds have negative yields worldwide Overseas investors including Europeans are getting pushed into U.S. investment-grade corporate debt by low returns at home as central banks globally cut growth forecasts, including the Federal Reserve on Wednesday. Relatively low yields in Japan and Europe make the higher yields on dollar-denominated bonds more attractive, while slowing growth in the U.S. cuts hedging costs. [Extracted from the article]

The article examines the status of the domestic bond market of Japan as of 2010. It notes the move of many borrowers to withdraw deals due to weak investor demand, despite reports that the market is flourishing. According to bankers in Tokyo, this lack of demand in the primary market will be only a temporary phenomenon. It cites that a certain level of issuance in the Japanese corporate bond market over the coming 12 months should be substantiated by refinancing requirements.

Possibility interest rates may rise after BOJ meeting: Mizuho "Nobody really knows what will be in the BOJ's review that's coming in September and there is a possibility it could be a further catalyst that pushes up interest rates", said Mizuho's Ohashi. [Extracted from the article]

A Toyota Motor Corp. unit sold yen bonds Tuesday with the lowest coupon ever for a Japanese company, reflecting the plunge in borrowing costs as the central bank pushes ahead with unprecedented monetary stimulus. Toyota, the world's largest automaker, last month sold 60 billion yen of debt including 20-year bonds paying a yield of 0.343 percent. [Extracted from the article]