Japan's Biggest Insurer Weighs Riskier Overseas CLO Investments
Japan's biggest life insurer is considering taking on a little more risk with its investments in collateralized loan obligations, as it looks for ways to eke out better returns abroad.
Nippon Life Insurance Co. last year joined other Japanese institutions that are buying CLOs — financial products made up of leveraged corporate loans — to diversify investments. They have typically focused on the highest-rated notes, which are seen as the least risky but offer lower returns.
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Business Insider
an hour ago
- Business Insider
An LA couple moved to Mexico to avoid deportation. They racked up $20K in debt, but are feeling more hopeful they can build a life together.
Alfredo Linares moved to Mexico with his wife Raegan Kline due to deportation fears in the U.S. The couple left Los Angeles with $20,000 in debt after closing their Japanese barbecue pop-up restaurant. After several months of instability, the two are finally finding some footing in Puerto Vallarta, Jalisco. When Raegan Kline and Alfredo Linares married last summer, their dream felt straightforward and simple: start a Japanese barbecue pop-up restaurant in Los Angeles and live happily ever after. But all of that changed in the fall when President Donald Trump, who had promised mass deportations on the campaign trail, won reelection. Linares, who had worked his way up in fine dining to become a cook in a Michelin Star restaurant, arrived in the US as a teenager at 19 with his family and has lived here illegally ever since. Kline, a US citizen, was stricken with worry that at any moment, her husband could be arrested and deported. "I really didn't feel safe," Kline said. "Every morning I would wake up saying, 'If we don't go and something happens to him, I'll never be able to forgive myself.' " In March, the couple moved from Culver City to Linare's birth country of Mexico in hopes of improving their chances of building a future together. "I lived in the shadows for 20 years," Linares said. "I'm 38 years old, so I don't think I have 10 more years of living in the shadows when I'm trying to build a business and grow as a family, as an entrepreneur." Do you have a story to share about moving or immigration? Reach out to this reporter at jdeng@ Going into debt to move to Mexico The couple received around $10,000 in cash from their parents as a wedding gift. They had originally hoped to use the money to hire a lawyer to help Linares gain citizenship, but they wrestled with the best way to use the money to secure a future together. "Do we really go ahead and gamble and trust this administration with this $10,000 that our parents gave us for our wedding gifts, or do we use that $10,000 to move to Mexico?" Kline said of their dilemma. But even the wedding gift wasn't enough to help them break even and start fresh in Mexico. The pair took on debt to start their Japanese barbecue business last spring. While they tried to get it off the ground, their bills ballooned to over $20,000. They raised over $4,000 online through GoFundMe to help them with their relocation. Since the move, they've attempted to find jobs in hospitality, but because Linares doesn't have an identification card and Kline doesn't have work authorization as a temporary resident, it's been difficult to pay the bills. "We're not earning an income," Kline said. "We have all of that stress and try to keep our credit card in a reasonable place and keep ourselves on a budget." Adjusting to life in a new country The biggest hurdle for them has been navigating the deluge of paperwork and bureaucracy in a new country. "I'm very Americanized," Linares said. "Yes, I'm Mexican, but I haven't been here for 20 years. It's totally different from the Mexico I left." From needing a physical copy of a birth certificate to struggling to establish Linares' permanent residence, it's been hard for him to get an ID card when they were first living in Airbnbs in Mexico City. "I need my ID, but I cannot have an ID because I don't have a home address. And I can't get a home address because I don't have a job, because I don't have an ID," Linares said of the frustrating situation. Now they are renting an apartment in Puerto Vallarta in the state of Jalisco, where they've been finally settling in over the past three weeks. "I feel like myself a little bit more," Kline said of the stability. "I'm realizing that this is where we live, this is our home. We're not on vacation." Kline is now able to see past the trials of the past few months and look toward the future with more hope. They've since brought down their rescue dog Dolly Love from Los Angeles to live with them in Mexico. "I do believe we made the right choice," Kline said. "I do believe that there's opportunity here. I do believe in my husband and his talents and his skills." The move to Mexico has tested their relationship and challenged them in many different ways, but Linares said the core of their bond hasn't been shaken. They keep a routine of checking in with each other over coffee every morning. "She makes things easier, and it's because of the communication that we have," Linares said of his wife.
Yahoo
4 hours ago
- Yahoo
Rice prices Japan's hot political issue, on and off the farm
All is calm at Satoshi Yamazaki's rice farm, with its freshly planted rows of vivid-green seedlings, but a row over the cost of the staple in Japan is threatening to deal the government a blow at the ballot box. Shortages of the grain caused by a supply chain snarl-up have seen prices almost double in a year, fuelling frustration over inflation -- and voters could let their anger be known in upper house elections due next month. To help ease the pain for consumers and restaurants, the government started tapping emergency stockpiles in March, having only previously done so during disasters. Yamazaki, who grows about 10 percent of his rice organically using ducks to eat pests, said he understands high prices are "troubling" for ordinary people. But he stressed that thin profits are a concern for many of those who produce it. "There's a gap between shop prices and what farmers sell rice for to traders and the like," he told AFP in the northern Niigata region. "Not all the money paid at shops becomes our income," said Yamazaki, a 42-year-old father of seven. A mosaic of factors lies behind the shortages, including an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic-buying last year prompted by a government warning about a potential "megaquake" that did not strike. - 'Old' rice - Meanwhile, the rising price of imported food has boosted the popularity of domestic rice, while record numbers of tourists are also blamed for a spike in consumption. Farm minister Shinjiro Koizumi has pledged to cut prices quicker by selling stockpiled rice directly to retailers -- attracting long queues to some shops. It appears to be working: the average retail price has edged down for a second week to 4,223 yen ($29) for five kilograms (11 pounds), down from a high of 4,285 yen in May. That hasn't stopped opposition politicians -- with an eye on the elections -- and online critics branding the reserve rice "old", with some likening it to animal feed. But analysts also blame Japan's decades-old policy of cutting rice-farming land. The policy was introduced to support prices that were being hit by falling demand brought about by changes in the Japanese diet. Under the 1971 policy, farmers were told to reduce the amount of space used to grow the grain in favour of other crops. That saw the amount of land used for rice paddies -- not including for livestock feed -- plunge below 1.4 million hectares (3.5 million acres) in 2024, from a peak of 3.3 million hectares in 1960. While the policy was officially abolished in 2018, it has continued in a form of incentives pushing farmers towards other commodities like soybeans. Adding to the crisis is Japan's ageing population. Many rice farmers are old and their children have no interest in taking over. Eighty percent of rice farmers are part-time with less than two hectares of fields but they account for only 20 percent of production, said agronomy expert Kazunuki Oizumi, professor emeritus of Miyagi University. Their main revenue comes from other jobs or pensions, he added. - Agriculture 'destroyed' - Toru Wakui, chairman of a large-scale farm in the northern Akita region who has for decades fought against the acreage reduction, said Japan should "seek an increase in rice production and exports to foreign markets". "If you only think about the domestic market while increasing output, of course prices will fall," he told AFP. "We need to look for markets abroad." "The 55 years of acreage reduction destroyed Japan's agriculture," said Wakui, 76, who urged Koizumi in a letter last month to "declare an expansion in rice production". He also said Japan should consider a scheme to help young people start agriculture businesses without the burden of initial investment in fields and machinery, by involving other sectors including banks and trading companies. Public support for Prime Minister Shigeru Ishiba's government has tumbled to its lowest level since he took office in October, which local media say was partly caused by the surge in inflation and soaring rice costs. He has told parliament that increasing production is "an option" to temper prices, but said food security and the livelihood of producers was also important. For the farmer Yamazaki, "wanting cheap rice with high quality" is a pipe dream. "We farmers are a little baffled by the limelight that suddenly shifted to us," he said. "But I think it's a good opportunity for the public to think about how rice is produced." kh/kaf/dan
Yahoo
5 hours ago
- Yahoo
Rice prices Japan's hot political issue, on and off the farm
All is calm at Satoshi Yamazaki's rice farm, with its freshly planted rows of vivid-green seedlings, but a row over the cost of the staple in Japan is threatening to deal the government a blow at the ballot box. Shortages of the grain caused by a supply chain snarl-up have seen prices almost double in a year, fuelling frustration over inflation -- and voters could let their anger be known in upper house elections due next month. To help ease the pain for consumers and restaurants, the government started tapping emergency stockpiles in March, having only previously done so during disasters. Yamazaki, who grows about 10 percent of his rice organically using ducks to eat pests, said he understands high prices are "troubling" for ordinary people. But he stressed that thin profits are a concern for many of those who produce it. "There's a gap between shop prices and what farmers sell rice for to traders and the like," he told AFP in the northern Niigata region. "Not all the money paid at shops becomes our income," said Yamazaki, a 42-year-old father of seven. A mosaic of factors lies behind the shortages, including an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic-buying last year prompted by a government warning about a potential "megaquake" that did not strike. - 'Old' rice - Meanwhile, the rising price of imported food has boosted the popularity of domestic rice, while record numbers of tourists are also blamed for a spike in consumption. Farm minister Shinjiro Koizumi has pledged to cut prices quicker by selling stockpiled rice directly to retailers -- attracting long queues to some shops. It appears to be working: the average retail price has edged down for a second week to 4,223 yen ($29) for five kilograms (11 pounds), down from a high of 4,285 yen in May. That hasn't stopped opposition politicians -- with an eye on the elections -- and online critics branding the reserve rice "old", with some likening it to animal feed. But analysts also blame Japan's decades-old policy of cutting rice-farming land. The policy was introduced to support prices that were being hit by falling demand brought about by changes in the Japanese diet. Under the 1971 policy, farmers were told to reduce the amount of space used to grow the grain in favour of other crops. That saw the amount of land used for rice paddies -- not including for livestock feed -- plunge below 1.4 million hectares (3.5 million acres) in 2024, from a peak of 3.3 million hectares in 1960. While the policy was officially abolished in 2018, it has continued in a form of incentives pushing farmers towards other commodities like soybeans. Adding to the crisis is Japan's ageing population. Many rice farmers are old and their children have no interest in taking over. Eighty percent of rice farmers are part-time with less than two hectares of fields but they account for only 20 percent of production, said agronomy expert Kazunuki Oizumi, professor emeritus of Miyagi University. Their main revenue comes from other jobs or pensions, he added. - Agriculture 'destroyed' - Toru Wakui, chairman of a large-scale farm in the northern Akita region who has for decades fought against the acreage reduction, said Japan should "seek an increase in rice production and exports to foreign markets". "If you only think about the domestic market while increasing output, of course prices will fall," he told AFP. "We need to look for markets abroad." "The 55 years of acreage reduction destroyed Japan's agriculture," said Wakui, 76, who urged Koizumi in a letter last month to "declare an expansion in rice production". He also said Japan should consider a scheme to help young people start agriculture businesses without the burden of initial investment in fields and machinery, by involving other sectors including banks and trading companies. Public support for Prime Minister Shigeru Ishiba's government has tumbled to its lowest level since he took office in October, which local media say was partly caused by the surge in inflation and soaring rice costs. He has told parliament that increasing production is "an option" to temper prices, but said food security and the livelihood of producers was also important. For the farmer Yamazaki, "wanting cheap rice with high quality" is a pipe dream. "We farmers are a little baffled by the limelight that suddenly shifted to us," he said. "But I think it's a good opportunity for the public to think about how rice is produced." kh/kaf/dan Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
