While Japan was making headlines for negative interest rates, regulators may have quietly handed yields on a plate to bond investors.
Mitsubishi UFJ Financial Group issued $2 billion of notes in a three-part sale Wednesday at a yield premium some 25 basis points higher than what similar notes from its operational unit, Bank of Tokyo Mitsubishi, were offering in the secondary market. A few years back, there would have been hardly any difference at all. Now, because of new regulations, investors globally are demanding extra payment for holding parent-company debt.
Free Juice
Mitsubishi UFJ’s bonds that can take losses offer a premium over ones that can’t
Source: Bloomberg
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Read the full article at: http://www.bloomberg.com/gadfly/articles/2016-04-22/endangered-japan-yield-sighted
