Japan in the Capital Markets (October 2024)

The landmark rise in interest rates announced by the Bank of Japan in July was a turning point for the country’s bond market, fuelling interest in shorter-dated deals and possibly triggering changes in investor portfolios, writes Rashmi Kumar

Japan’s top issuers have not had an easy year, due to volatile local and international markets caused by the Bank of Japan’s and US Federal Reserve’s different approaches to interest rates. Staying in touch with domestic and overseas investors and carefully timing bond deals has been critical, and will likely remain important in the year ahead.

Japan’s landmark sovereign climate transition bonds have made it a frontrunner in global efforts to achieve net zero and — despite criticisms — offer a much-needed template for other countries pondering their own transition frameworks. Rashmi Kumar reports.