Lates News

With interest rates climbing to their highest levels in nearly thirty years, the corporate bond market in Japan is undergoing changes. Although higher interest rates increase the financing costs for issuers, they are also prompting investors to shift towards fixed-income securities, initiating a new round of capital flow. Noriaki Nomura, head of the Mitsubishi UFJ Securities Capital Markets Department, stated that as Japan returns to an inflationary environment, companies are prioritizing capital expenditures to drive revenue growth rather than cutting costs. As of March this year, the total amount of corporate bond issuances has reached a record-breaking 16.7 trillion yen (approximately 103 billion US dollars). Despite securities firms calculating issuances in different ways, it is generally estimated based on their own calculations that the total issuance for this fiscal year will be roughly in line with last year's level.