Bank of Japan (BOJ) Warns Japanese Banks That They Own Too Many CLOs

Desperate for yield, 2 large Japanese zombie banks now own about 15% of all CLOs and the Bank of Japan (BOJ), Japan's central bank is worried. But, maybe they shouldn't have done financial repression/Japanification then so banks were so desperate for yield and willing to buy CLOs?

BOJ warns of rising financial vulnerability as banks hunt for yields https://www.reuters.com/article/us-japan-economy-boj-idUSKBN1X30IA

BOJ says banks vulnerable to falling prices of corporate loans if global economy worsens https://www.japantimes.co.jp/news/2019/10/25/business/financial-markets/bank-of-japan-clo-market

Norinchukin Bank and Japan Post Bank Co. are among firms that have sharply boosted their holdings of CLOs in recent years, in search of higher returns at a time of negative interest rates at home. Norinchukin alone holds ¥8 trillion ($74 billion) of such instruments, according to its latest financial report.

Japan’s Biggest CLO Investor Cools on $750 Billion Market https://finance.yahoo.com/news/japan-biggest-clo-investor-cools-065140232.html

Track the US Dollar to Japanese Yen exchange rate here: https://www.macrotrends.net/2550/dollar-yen-exchange-rate-historical-chart

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