Japan’s Convertible Bonds Regain Favor as Rates Continue to Rise

Japanese companies issued the highest convertible bond volume in over two decades in the first half, shifting to convertibles as borrowing costs rise. The move suggests funding conditions have tightened with climbing interest rates, likely pressuring new financing decisions even if it provides a cheaper route than straight debt.

Analysis

Japanese companies issued the highest convertible bond volume in over two decades in the first half, shifting to convertibles as borrowing costs rise. The move suggests funding conditions have tightened with climbing interest rates, likely pressuring new financing decisions even if it provides a cheaper route than straight debt.