Record easing by Bank of Japan (BOJ) is making Yen attractive to issue bonds in.
Lower yields in Yen and its upward trend against dollar makes it even more attractive for US based borrowers who are expecting their end cost to drop in US dollar terms.
Recently Yen has broken above its range of 118-122 and currently trading at 123.9. With US Federal Reserve set to hike rates, Yen is all set to drop further against dollar. A push towards 130 is very much likely.
Naturally it makes perfect sense to issue bonds denominated in Yen for multinational companies. Euro has been another favorite currency for bond issuance, however recent rout in bond market with extreme volatility is once again making Yen the preferred funding currency.
- Apple has announced that it will be selling 5 year bonds denominated in Yen and it has hired Goldman Sachs and MUFG to handle the issuance. The issue size is not yet declared but expected to be large.


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