Japanese investors are buying record amounts of bonds sold by the World Bank and state-backed lenders, in a search for higher returns as government debt yields tumble, reports Bloomberg. Kokusai Global Sovereign Open, Asia’s biggest bond fund, boosted holdings of the securities, known as supranational bonds, to an all-time high of 8.2% of its portfolio. MUFJ Asset Management started four funds that invest in the debt and Diam Co is drawing record amounts earmarked for the notes. Japanese investors bought an unprecedented Y2,180bn ($25.8bn) net amount of overseas debt in the week ended Aug 13.

This entry was posted by Gwen Robinson on Friday, September 3rd, 2010 at 5:47 and is featured in The 6am Cut London (3 Sep 2010), The Lunch Wrap (3 Sep 2010) . Tagged with bonds, japan, kokusai, world bank. Edit this entry.