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Japan risks its very own Brady moment amid negative rates

Subordinated loans, even the short-term kind, tend to be a good barometer of financial excess

DICEY BUSINESS: JFE Holdings got a 60-year subordinated loan from seven institutions on Wednesday. The previous week, commodity trader Mitsui & Co announced it was seeking a similar facility, and at least five other companies are doing deals along the same lines.


IN the 1970s, banks in the US and Europe thought they had found a great way to make money amid falling interest rates: they lent directly to governments in Latin America, for high fees.

The rationale was that if these nations could print money, they would never default....

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