The Japanese market is excited as the "Stock God" issues yen bonds again, with a record-breaking scale
Buffett once again issued a large amount of bonds to prepare "ammunition", with analysts speculating that the "stock god" may buy value stocks such as banks, insurance, and shipping this time
After buying into the five major trading companies to boost the Japanese stock market to a new high, Buffett once again made a big move by issuing bonds to prepare for "ammunition," with the market closely watching which stocks the stock god may purchase.
On Thursday, Berkshire Hathaway issued a multi-tranche bond worth 281.8 billion Japanese yen (approximately $1.89 billion), marking the largest yen bond transaction since the company's first issuance in 2019.
This bond issuance consists of seven tranches with maturities ranging from 3 years to 30 years. Except for the 3-year tranche, the bonds with other maturities offered higher premiums than the yen bond issuance in April.
This issuance also made Berkshire Hathaway the largest foreign yen bond issuer this year, raising a total of 545.1 billion yen.
Haruyasu Kato, a fund manager at Asset Management One Co, stated: "The company's ability to raise so much capital in a year demonstrates investors' confidence in Berkshire. This transaction also indicates strong demand from Japanese investors for high-yield bonds."
Most of Berkshire's investments in Japanese companies are financed through the issuance of yen bonds. Earlier this year, Buffett's investment in the five major trading companies in Japan led to a record high for the Nikkei 225 index.
The market is watching the stocks that Buffett may purchase, with analysis speculating that the "stock god" may buy value stocks such as banks, insurance, and shipping companies.
Nomura Securities believes that Buffett is more likely to purchase financial stocks, especially after the interest rate hike by Japanese banks, which would help improve industry profit margins. Companies like Mitsubishi UFJ Financial Group and Sumitomo Mitsui Trust Holdings have characteristics that align with Berkshire's investment portfolio.
Daiwa Securities believes that insurance and shipping companies could be Buffett's next choices, as shipping and insurance companies have led the East China Index since August, potentially fitting Buffett's value investment strategy