Japan Post Pledges Caution as CLO Holdings Hit $14 Billion

Japan Post Bank Co. said it would be cautious about future investment in bundled corporate loans after raising holdings last quarter, as financial authorities increase scrutiny of the practice, Bloomberg News reported. The postal savings giant boosted its holdings of collateralized loan obligations by 15% from June to 1.52 trillion yen ($14 billion) as of Sept. 30, an earnings presentation showed Thursday. “We are acting very carefully and analyzing a range of issues as authorities show interest” in Japanese investments in overseas CLOs, Hiroichi Shishimi, a senior executive, said at a briefing. With about $1.7 trillion of household savings, Japan Post Bank has been buying CLOs and other foreign assets in search of returns that domestic government bonds no longer provide. Read more

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