Japanese companies are expanding their toolkit to deal with the steepest borrowing costs in a generation, including considering sales of strategic shareholdings and other assets to offset the impact, a Bloomberg News survey shows. Other measures under deliberation include borrowing more overseas and bringing forward funding plans, a survey of 30 Japanese nonfinancial companies with outstanding yen bonds shows. Results are based on replies from 14 firms gathered in August.
With Japan’s 10-year government bond yield touching 3% for the first time in three decades this week and the Bank of Japan’s policy stance becoming increasingly a topic of U.S.-Japan discussion, how Japanese corporates tackle rising funding costs also has the capacity to sway global markets, as it has in the past.
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