A regional bank that has stood out among its peers for making money on assets ranging from U.S. Treasuries to Nvidia is now looking closer to home for investments.
Iyogin Holdings, which shunned Japanese government bonds during the era of negative interest rates, is ready to jump back in once a rise in yields runs its course, said Chief Executive Officer Kenji Miyoshi.
Yields on Japan’s sovereign debt have risen from rock-bottom levels as the return of inflation to the economy prompts the central bank to pare bond purchases and raise interest rates. That’s led financial institutions to contemplate when to return to the nation’s $7.9 trillion debt market after chasing higher returns abroad for years — a task that has been complicated by recent ructions, including a spike in long-term yields.