Ever-shrinking yields around the world have left the U.S.looking like a gold mine to Japanese banks.

Mizuho Financial Group Inc., for example, is rapidly expandingits American credit business. The Tokyo-based bank has nearlydoubled its company-debt originations team since April, accordingto Jerry Rizzieri, Mizuho Securities USA Inc.'s head of fixedincome. It's also added a collateralized loan obligation (CLO)group within the past year.

The allure is easy to understand: There's billions of dollars tobe earned off companies racing to lock in cheap borrowing costsbefore the Federal Reserve raises interest rates. And there'smore money in the trading frenzy that sales usually prompt—whichoffer a more attractive proposition in the U.S. than in Japan,where government bonds have negative yields.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.