Japan in the Capital Markets September 2022

Transition bonds are in the spotlight in Japan thanks to policy support, but the country will need to tackle concerns around greenwashing if it wants a real shot at meeting its net zero goals, reports Nancy Qu

Volatility and unpredictability ruling over much of capital markets this year have complicated global funding conditions. But Japan’s largest banks have stood out with a bigger presence abroad, particularly in euros, reports Atanas Dinov.

Volatile markets, geopolitical tensions, divergence in monetary policies and an impending changing of the guard at the Bank of Japan are all among the challenges Japan’s leading issuers are getting ready to tackle over the next year. But their strong credentials and growing emphasis on environmental, social and governance factors mean they will still likely have the upper hand when it comes to tapping capital markets.

Samurai bonds have had a strong year so far as international issuers flock to the Japanese yen market for its relative stability and diversification option. The outlook is positive too — but borrowers will have to contend with increasingly cautious investors, writes Manju Dalal.