Norinchukin Bank plans to sell approximately ¥10 trillion ($63 billion) in U.S. and European sovereign bonds to mitigate losses from adverse interest rate bets, according to a spokesperson for the Japanese agricultural bank.
This bond sale, representing nearly a sixth of the bank’s global portfolio, is scheduled to be completed by the end of March. The bank anticipates reporting a net loss of ¥1.5 trillion for the current fiscal year, tripling its previous estimate of ¥500 billion.
The final loss amount could vary based on the bond volume and prevailing market conditions.
Strategic shift and portfolio overhaul by Norinchukin
Chief Executive Officer Kazuto Oku announced that Norinchukin Bank would reduce its sovereign interest rate risk and diversify into assets involving corporate and individual credit risk. This strategic shift follows…
