Norinchukin CLO investment balance in the 7 trillion yen range New investment to be curbed November 21 20:29
Norinchukin Bank, which has a large number of CLOs that have been pointed out as a risk in financial products made by collecting loans from American companies, has revealed that the current investment balance is in the 7 trillion yen range, and will invest in the future. I showed the policy to hold down.
CLO is a financial product created by collecting loans for American companies with low creditworthiness. The risk is high and the yield is high. Japanese financial institutions such as Norinchukin Bank are investing in search for advantageous investment destinations. Has increased.
In line with the interim financial results announced on the 21st, Norinchukin made it clear that CLO's investment balance as of the end of September amounted to approximately 7.9 trillion yen.
Although the investment balance is one of the largest in the world, Agricultural and Forestry Chukin has indicated that its recent CLO yields are not as high as before, and that new investments will be suppressed in the future.
Mr. Otowa, President, said, “We used to make a neutral decision based on risk and return, but we think that new investments will be constrained in the future. It was.
CLO is similar in structure to financial products made by collecting mortgages that triggered the Lehman shock 11 years ago, and the BOJ may be losing prices if the economy deteriorates sharply last month. The report points out that it is necessary.