※Translated with Notion AI. (Plus version)
An article titled “Bond Investors Lean towards Optimism, No Longer Afraid of BOJ’s Deregulation” was published in the morning edition of the Nikkei Shimbun on March 8th.
The article states, “As the Bank of Japan’s negative interest rate policy is about to be lifted, the domestic corporate bond market is surprisingly robust.
” It also mentions, “In a situation where interest rate hikes are expected, bond buyers have refrained from investing, leading to a spread in corporate bonds (added interest rate over government bonds).
” The article explains that investors are becoming more willing to take risks, disarming their caution and asserting that “The Bank of Japan is no longer scary.”
I have also received a question from a friend working in a non-financial industry, “Is it time to buy corporate bonds as written in the Nikkei article?”
As someone who has been involved in bond trading at foreign financial institutions for nearly 30 years, I would like to reiterate the difference between institutional and individual investors.
