STOCKS | Rising Rates Reshape Japan's Corporate Bond Market

Japan's corporate bond market is changing as interest rates climb to their highest level in nearly three decades. According to Jin10, Mitsubishi UFJ's debt capital markets head Noriaki Nomura said companies are prioritizing capital expenditure to drive revenue growth rather than cutting costs as Japan returns to an inflation environment. Corporate bond issuance totaled a record 16.7 trillion yen as of March this year, and brokers generally expect this fiscal year's total issuance to be roughly flat with last year, though they count issuance differently.