In hunt for yield, Japan's banks snap up leveraged US debt
Tokyo
JAPANESE banks have stepped up investments in highly illiquid, securitised loans, mostly in the US market, as it becomes increasingly difficult to earn decent interest income from conventional products like government bonds.
A Reuters survey showed some of Japan's biggest banks, led by Norinchukin Bank , have nearly doubled their investment in collateralised loan obligations (CLOs) in the nine months to December.
