FlowBank

989 days ago

Foreigners are piling up in Japanese bonds, near-record buys

Foreign investors purchased a near-record high of $37 billion (4.06 trillion yen) worth of Japanese bonds last months, just shy of the previous record of 4.43 trillion yen in December 2018. Overseas buyers using cross-currency basis swaps can enhance yields beyond what’s offered by positive yielding domestic debt. Source: Bloomberg, JSDA, Yahoo Finance

#Bonds
Foreigners are piling up in Japanese bonds, near-record buys

993 days ago

Bank of Japan is entering the ESG effort with green bonds

Bank of Japan joined the global battle against climate with incentives for lenders to to help businesses move to a greener economy and plans to help them buy foreign green bonds. 

#Bonds
Bank of Japan is entering the ESG effort with green bonds

994 days ago

Green bonds are set recover this year with a new record led by Europeans

The momentum of green bond issuance for the rest of the year will likely increase following Europe's new standard. The UN Climate Change Conference in October could be set to boost bond demand. Issuance this year could surpass $450B. Nonfinancial corporate and government-backed entities are currently leading the way. Source: S&P Global

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996 days ago

Higher yields for poorer ESG scores ?

Countries such as Egypt, Saudi Arabia or China that dealt with a lot of challenging ESG related stories such as Uyghur's population treatment are offering the highest yields. A poor human rights record doesn't seem to be a barrier to borrowing money. 

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1000 days ago

China's bond market grew 5X in the last ten years

China's liberalizing capital markets and also investor confidence are clearly shown in this graph below. Under the surface we're seeing an increasing level of local and offshore bonds in China. The strengthening of the chinese currency could also be behind this surge in demand for Chinese debt. There is risk around the government deleveraging the economy which could introduce short term volatility. 

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