Japan's US Corporate Bond Sell Off Brings Risks: Credit Weekly.

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]