BlackRock Says Japanese Bonds Offer 6% Yield With Currency Boost

Japan’s sovereign bonds can offer yields of around 6% for dollar-based investors willing to take a bet on long-dated debt, according to BlackRock Inc., which dubbed the current backdrop a “golden age” for investing.

Investors can earn around 4% from the yield on long-dated Japanese bonds and pick up an additional 2% by hedging the currency, Navin Saigal, BlackRock’s head of global fixed income for Asia Pacific, said in a Bloomberg TV interview, referring to a strategy that effectively involves lending dollars and receiving yen.