Borrowers Rush to Sell Yen Bonds as Rising Yields Lure Investors
At least 10 issuers including drinks producers Kirin Holdings Co. and Suntory Holdings Ltd., as well as real estate company Mitsui Fudosan Co. and the Republic of Indonesia rushed to the market Friday. They priced more than ¥530 billion ($3.7 billion) of bonds in total, with maturities of mainly 10 years or less, in one of the busiest days this year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
Hong Kong Just Flipped the IPO Game -- And China's Biggest Companies Are Taking Notice
Hong Kong is turning up the heat in the IPO raceand the latest rule changes could help keep the engine running. The city's exchange has just lowered its minimum public float requirement for new listings to 10% from 15%, while giving institutional investors a bigger bite of the pie in high-demand offerings. The move is aimed squarely at drawing in more heavyweight Chinese firms, especially those already listed on the mainland. With listings forecasted to hit over $22 billion this year, driven by names like battery giant Contemporary Amperex Technology Co. (CYATY), Hong Kong is making a serious push to cement its comeback as Asia's IPO hub. Warning! GuruFocus has detected 6 Warning Sign with CYATY. The new framework also reworks the retail allocation game. In hot IPOs, Hong Kong's unique clawback mechanism used to allow retail investors to claim up to 50% of sharesbut that cap is now trimmed to 35%. It's a middle ground from the exchange's earlier proposal of 20%, but still enough to rattle brokers reliant on retail trading. The shift is intended to reduce price spikes and slumps triggered by speculative retail demand, as seen during the frenzy around Mixue Group's debut. Some firms like Phillip Securities say the move could ding their commission income, but others see a net positivemore stable pricing, fewer distortions, and a healthier long-term IPO market. Still, this isn't the end of the reform cycle. A fresh consultation is underway to potentially lower the minimum float for China-traded companies to just 5% post-listing. Strategists like Aletheia Capital's Vincent Chan caution that smaller companies could suffer from illiquidity if float drops too lowbut for giants, the rule change could be a non-issue. Legal advisors say the key will be staying selective. Tailor-made approaches may be needed to keep global investors engaged while avoiding the pitfalls of past overexuberance. For now, Hong Kong's message is clear: it's open for businessand ready to play offense. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 minutes ago
- Bloomberg
The Price of Installing an Ardent Rate Cutter
Thailand was saddled with US tariffs and forced to call it a good deal. But the country's besieged political leaders have managed a feat that President Donald Trump has so far found elusive. In naming an advocate of aggressive monetary easing to be the next central bank chief, they got the financial manager they want — or think they want. The benefits may be short-lived. After a bruising campaign to pressure the Bank of Thailand to juice growth, the cabinet recently tapped a critic of the incumbent governor to lead the powerful authority. More stimulus is certainly warranted: Deflation is a threat, business confidence is languishing and recession is a very real possibility. The bank has eased this year, though it is reluctant to speed further steps. Outgoing chief Sethaput Suthiwartnarueput has defended the institution's independence, almost to a fault, while being careful not to rule out additional reductions. Things seem stuck.
Yahoo
34 minutes ago
- Yahoo
Denso's quarterly profit declines on tariffs and strong yen
Denso, a key supplier to Toyota, has reported that the consolidated operating profit fell by 11.1% to Y107.2bn ($0.7bn) for the first quarter (Q1) ending 30 June 2025. Profit attributable to parent company's owners saw a 16.1% down to Y79.3bn ($0.5bn). The company's consolidated revenue stood at Y1,754.1bn ($11.7bn), in line with the last year. These figures come against the backdrop of a global automotive industry grappling with supply chain issues, and the recent profit decline has significant implications for the Japanese automaker's supply chain. In July, the US agreed to lower tariffs on Japanese car imports to 15%, a substantial reduction from the proposed 25%. This tariff reduction is expected to alleviate some pressure on Japanese auto manufacturers, including Toyota, which has been facing production bottlenecks partly due to Denso's challenges. Denso executive vice president and CFO Yasushi Matsui commented: "Revenue in the first quarter remained consistent with the previous year, driven by a strong increase in vehicle sales in Japan, despite a decline in revenue due to the impact of the strong yen." He also noted that the company forecasts Y7,200.0bn ($48.2bn) in revenue and Y675.0bn ($4.5bn) in operating profit for the fiscal year, taking into account the first quarter's results and the anticipated tariff cost reflections from the second quarter onwards. Matsui added: 'Operating profit forecast remains unchanged supported by efforts to minimise the impact of tariff costs and to steadily reflect incurred costs in pricing. Furthermore, as part of measures to enhance corporate value, it was resolved to sell Denso's own shares in Toyota Industries Corporation ('Toyota Industries') and to provide advance notice of a tender offer for its own shares held by Toyota Industries.' Regionally, Denso saw a revenue rise in Japan by 2.9% to Y1,013.3bn ($6.8bn), while operating profit plummeted by 70.4% to Y13.3bn ($89.3m). North America experienced a revenue decrease of 5.4% to Y473.2bn ($3.2bn), with a 3% drop in operating profit. Europe's revenue fell by 6.4% to Y186.9bn ($1.3bn), but operating profit rose by 4.4%. Asia's revenue dipped slightly by 0.5% to Y459.0bn ($3.1bn), with a 33.3% increase in operating profit. Other areas saw a 4% revenue increase and a 7.3% decrease in operating profit. The interdependence between Toyota and Denso is highlighted by Ainvest, noting that Denso supplies more than 1,000 components per vehicle to Toyota. This has traditionally streamlined Toyota's production process but has also created vulnerabilities. Toyota is now facing extended wait times for hybrid models, prompting efforts to localise production, such as the $14bn battery plant in North Carolina in the US and a $7bn joint venture with Mazda in Alabama. "Denso's quarterly profit declines on tariffs and strong yen" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
