Buffett’s Berkshire to Sell Yen Bonds Again as BOJ Bets Rise Takahiko Hyuga Wed, November 8, 2023 at 1:10 AM EST·2 min read 1 / 2 Buffett’s Berkshire to Sell Yen Bonds Again as BOJ Bets Rise In this article: BRK-B -0.13% Watchlist Significant Event | 2d Berkshire Hathaway Energy says it may owe US agency money for 2020 S (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. plans to sell yen-denominated corporate bonds for the second time this year as expectations the Bank of Japan will move away from negative interest rates pushes up borrowing costs. Most Read from Bloomberg The company is considering a bond sale to qualified institutional investors in Japan in the near future, according to lead underwriter Mizuho Securities Co. It said that itself and BofA Securities Japan Co. will manage the deal, and didn’t give any further details. The plan comes a week after Governor Kazuo Ueda effectively loosened the 1% cap on 10-year sovereign bond yields. It’s a reminder that companies such as Berkshire Hathaway, one of the largest overseas issuers of yen debt, potentially face higher borrowing costs when Japan abandons the world’s last negative interest-rate regime. ‘With interest rates looking high, they may want to take a fixed term for as long as possible, but it will still be a cheap procurement for them,” said Haruyasu Kato, a fund manager at Asset Management One in Tokyo. “We are at a turning point for the Japanese corporate bond market.” Berkshire Hathaway already paid some of its highest costs ever to sell yen bonds in April as speculation of BOJ policy tightening increased the burden for issuers, even though they remain low by global standards. The five-tranche ¥164.4 billion ($1.1 billion) issuance came the same month that Buffett visited Japan to meet with executives of trading companies. The veteran investor in June announced that he had increased his holdings of firms including Mitsubishi Corp. and Itochu Corp., which lifted sentiment for the entire Japanese share market and helped boost the nation’s equities to a 33-year high
Not sure why you can't figure that out yourself. He is of course bullish on the yen. He believed and we now all know that BOJ made an adjustment in its monetary policy. Inflation is slowly rising in Japan and BOJ already guides yields higher (such as with the announcement to remove the hard cap on 10yr jgbs yields). A stronger yen also favors his Japanese equity positions which are currently, to my knowledge, not all fx hedged.
%% EXACTLY; +not sure how that help s me .[c]Can that help me to know his average price in AAPL\ CVX OXY?? NO. CAN that help me to read [c]Charie m\ rebuke \GM went to h*ll, one contract 2 @time=that could confirm[cc] help me 'cause i try to avoid unions mostly LOL. NOta stock tip, not 100 years young.
He is a smart man. I am sure he has yen hedge going on before he puts large sum into Japanese market. Yen dropped a lot since his entry, not sure he has a view on the yen either way.
he might even fund in Yen naturally given the scope of his business. When i was trading institutionally, we funded in local currencies so the only fx exposure we had was on our pnl. If we bought DB German shares, and the euro went down, but DB stock was unchanged, we had no pnl.
I was thinking about a paug perfect asset swap, set a tolerable band, say 110-140, beyond that you pay or get paid.
With the Japanese demographics, Gov debt, inflation trend and BOJ's policy, he knows those bonds he sold are essentially free money.