The Financial Post reports in its Friday edition that Berkshire Hathaway has hired banks for a potential yen-denominated bond sale, as borrowers around the world drive issuance so far this year to a new record.
A Bloomberg dispatch to the Post says the proposed sale from Warren Buffett's company would bring it back to the yen market for the second time this year, and spurred speculation it may be mulling more investments in Japan. The local yen debt market has seen a pickup in bond offerings this week by overseas issuers with Renault SA and Slovenia getting ready to price deals.
The bond mandate is another sign of how foreign investors are renewing interest in Japan, where major equity benchmarks have repeatedly hit new highs recently. Berkshire is one of the biggest borrowers in yen bond markets, and attracts increased attention given the company's stakes in Japan's largest trading companies.
"Given that Berkshire is currently holding a considerable amount of cash, the fact that it is issuing yen-denominated bonds suggests that it sees investment opportunities in Japan -- likely directing funds toward trading companies," said Hiroshi Namioka, chief strategist at T&D Asset Management Co.
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