The first semester of the fiscal year ends tomorrow. The analysts will remember it as a period when Japan issued a record volume of corporate bonds.
Bloomberg estimated that the companies from the land of the rising sun had issued bonds with a total volume of about 85 billion US dollars (or 9.2 trillion yen). The reason for this is simple and clear – the record low cost of attraction.
Analysts agree that after the records of the first half of the year, the market will experience a phenomenal rollback in the second one. The projected reduction in public offering is 4 trillion yen.
The fact that the volume of bonds purchased is usually planned for a year can cause the reason for the future rollback. Over the past six months, most buyers have almost exceeded their annual purchase limits. By the way, that’s why those issuers who are only planning to enter the Japanese market are at risk of remaining unsold.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group