The yen blues
The cost of credit protection on Japanese corporate debt tightened across the board this week, with spreads in the electronics sector particularly narrower, although volumes were thin.
The cost of credit protection on Japanese electronics companies ended the week off their highs, as market participants finished re-adjusting portfolios and protection sellers re-emerged in the market.
Credit default swap spreads on Japanese computer maker Fujitsu’s five-year debt protection widened 30 basis points this week, following media speculation that the company might become a “rehabilitation candidate” for the government’s Industrial...
Most of the trading in Japan’s credit default swaps market centred around names with outstanding convertible bonds in quiet trading this week.
The Tokyo International Financial Futures Exchange (Tiffe) plans to launch long-term interest rate futures by May, despite a fall-off in interest for the exchange's short-term rates contracts.
Credit protection on Japanese names continued a tightening trend this week, on the back of positive sentiment globally with the war in Iraq nearing a close and the absence of negative news in the domestic market.
Japanese bank credit protection spreads widened this week as a capital-raising exercise by Sumitomo Mitsui Banking Corp (SMBC) sparked renewed fears that banks were trying to shore-up capital reserves ahead of their year-end results.
Spreads on Japanese bank credit default swaps widened an average 10 basis points this week, sparked by renewed investor concerns about unrealised losses linked to their large equity portfolios.
Japanese credit default swaps were generally tighter this week, as more participants came back to the market, putting an end to several weeks of illiquidity during the holiday season.
Credit default swap spreads in Japan continued to tighten this week, despite the equity market benchmark Nikkei index closing down every day since Monday, ending at 8,516.07, 347.19 points or 4% down on the week.
A weaker Japanese yen earlier this week lifted market sentiment on the financial prospects of Japanese export companies, which caused their credit protection costs to narrow up to 20 basis points.
Trading volumes in Japanese credit default swaps were about one quarter of typical levels this week, with spreads tightening in a similar manner to that seen in Europe and the US.
The decision by the Japanese government this week to delay the release of drastic proposals to tackle the country’s decade-long, non-performing loan problem, caused protection on Japanese bank debt to trade slightly wider, with bid-offer spreads remaining...
Trading in credit default swaps in Japan remained largely directionless this week in the absence of any significant end-client flow, and amid continued uncertainty regarding the government’s plans for the country’s ailing banks.
Credit protection on Japanese corporate debt widened this week, as a number of hard-line reformers were appointed to a banking task force committee by Heizo Takenaka, the newly appointed head of the Financial Service Agency (FSA), the country’s financial...
Credit default swaps in Japan continued to narrow following a sell-off in the past week or two, although volumes remained low this week, Tokyo dealers said. Spreads on five-year debt protection for electronics sector companies tightened by as much as...