Warren Buffett could buy more Japanese stocks as Berkshire eyes yen bonds

  • Warren Buffett’s Berkshire Hathaway has started exploring issuing yen bonds, according to reports.
  • The conglomerate has established itself in recent years as one of the largest foreign issuers of yen bonds.
  • A new deal could signal new investment in Japanese stocks, Nikkei Asia reported.

Warren Buffett’s Berkshire Hathaway could issue more yen bonds, which could suggest new investments in Japanese stocks, according to a Nikkei Asia report.

Berkshire has brought in BofA Japan Securities and Mizuho Securities to underwrite the bonds, and some of the money raised will be used to refinance debt maturing this year, Nikkei said.

Buffett’s empire is a top foreign issuer of yen bonds and has issued them in each of the past three years. Its most recent offer came in December for a total of 115 billion yen, or about $870 million. Berkshire holds about $1 trillion in outstanding yen-denominated debt, according to Refinitiv data cited by Nikkei.

Latest yen bond deal could be priced as early as Friday, sources say Bloomberg. Multiple tranches can be put up for sale, with a 30-year maturity at around 125 basis points, he added.

New yen bond issues could lead Berkshire to add to its portfolio of Japanese equities. In August 2020, Berkshire disclosed stakes in Mitsubishi and Mitsui & Co., and said it increased its holdings in those companies in November 2022.

The potential new obligations also come when Kazuo Ueda takes over the Bank of Japan. His recent statements suggest that monetary easing may remain in place in the near term, although markets are bracing for a possible shift to tighter policy.

Japanese 10-year bond yields rose as traders braced for potential monetary policy adjustments from Ueda.

Leave a Comment