Dealers split on role of Japan’s term rate

Isda AGM: Japanese corporates continue to eye “fragile” JPY term rate, despite concerns

Japanese banks are divided on whether local corporates should be more strongly encouraged to adopt a backward-looking compounded version of the yen alternative risk-free rate (RFR) in cash and swaps products instead of a term rate.

Toshikazu Nakagawa, head of the markets regulation management team in Mizuho Bank’s global co-ordination department, said a survey of corporate clients had revealed a preference for the Tokyo term risk-free rate (Torf) as the replacement for outgoing yen Libor in