Reported 6 months ago
Overseas issuers are rushing to the yen bond market at the quickest pace in five years, selling bonds before an expected Bank of Japan interest rate hike that will increase borrowing costs. Notably, Lloyds Banking Group Plc, KKR & Co., and Deutsche Bank AG have issued yen debt this week, contributing to total sales of ¥477.3 billion, the highest for May since 2019. Japanese investors are attracted to these bonds as they offer higher premiums compared to local corporate bonds, with overseas issuers providing an average coupon of 1.46% this year, surpassing Japanese corporate bonds at 1.096%.
Source: YAHOO