Reported 8 months ago
Norinchukin Bank, a historic Japanese agricultural bank, surprised the market by announcing the sale of $63 billion in low-yielding US and European government bonds due to rising short-term funding costs. The bank warned of potential losses tripling to $9.5 billion this fiscal year, highlighting the risks in a market where higher borrowing costs are impacting institutions that anticipated falling rates. Despite facing questions surrounding its debt mismanagement, Norinchukin aims to optimize its portfolio by diversifying assets and recovering from losses by gradually selling bonds before the fiscal year end in March.
Source: YAHOO