Japan in the Capital Markets Sep 2020
What impact has Covid-19 had on Japan? The answer is complicated. No major economy has done so well at containing the spread of the virus — or so badly at limiting the economic fall-out. William Pesek reports.
The Bank of Japan has used every implement in the monetary policy toolbox to try to kick-start the economy. Does it have any tricks left to fight the impact of the coronavirus? Matthew Thomas reports.
The Bank of Japan has long been the driver of yields in the government bond market. It has increasingly become a key player in corporate bonds as well, creating opportunities for issuers and investors alike.
Samurai bonds have taken a big hit this year due to Covid-19, with deal volumes slumping by more than 75%. This has not only tested the resilience of the market — but also raised serious questions about its long-term prospects.
The Covid-19 pandemic has spurred a shift in Japan’s socially responsible investment (SRI) bond market, which has long supported green deals but is now turning its focus to other environmental, social and governance products.
Covid-19 has fundamentally changed how the world operates — and capital markets are no exception. In Japan, it has shown the potential of the bond market to serve the common good.
Japan’s banks have faced multiple crises over past decades, but the coronavirus pandemic has thrown out some fresh surprises — and could challenge their future growth, writes William Pesek.
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