Reported about 18 hours ago
Japan's leading brokerage firms are reconsidering their sale of structured loans linked to Japanese government bonds (JGBs) following a warning from the financial regulator regarding potential risks and market oversight. After a statement from the Financial Services Agency criticized local banks for inadequate risk management associated with repackaged JGBs, major firms like Nomura and Mizuho are reassessing their strategies in light of regulatory scrutiny and changing market conditions. Concerns have been raised about buyers’ abilities to manage risks effectively, leading to a potential rethink in product offerings to align with client needs and mitigate risks.
Source: YAHOO