Venture Capital dan repost
🇯🇵 Japan's biggest insurers are sitting on $91B in bond losses
Japan's 4 largest insurers now hold ¥14.5 trillion ($91B) in unrealized bond losses. In March 2024, that figure was below ¥2 trillion, and it has increased every quarter since.
The problem is rising Japanese government bond yields. As yields climb, existing bonds lose value, leaving institutions that accumulated huge portfolios during the low-rate era with mounting paper losses.
These losses only become realized if the bonds are sold, but they complicate the Bank of Japan's path. Faster rate hikes would push yields higher and put even more pressure on the value of bonds already sitting across the financial system.
Japan needs higher rates to support the yen, but raising them too quickly creates another problem at home.
✔️ @venture
Japan's 4 largest insurers now hold ¥14.5 trillion ($91B) in unrealized bond losses. In March 2024, that figure was below ¥2 trillion, and it has increased every quarter since.
The problem is rising Japanese government bond yields. As yields climb, existing bonds lose value, leaving institutions that accumulated huge portfolios during the low-rate era with mounting paper losses.
These losses only become realized if the bonds are sold, but they complicate the Bank of Japan's path. Faster rate hikes would push yields higher and put even more pressure on the value of bonds already sitting across the financial system.
Japan needs higher rates to support the yen, but raising them too quickly creates another problem at home.
✔️ @venture