Japan Credit Pipeline Slows as Investors Grapple With Volatility

The pipeline for Japanese corporate bonds is the slowest since 2023 as investors contend with uncertainty about the Middle East war.

The number of borrowers planning yen deals at the start of the new fiscal year is down about 60% from a year earlier, according to data compiled by Bloomberg. Demand has weakened as Iran tensions fuel more rate volatility in a market that’s already under pressure due to expectations of another Bank of Japan rate hike.