Top Japan insurer urges companies to issue bonds in yield hunt

Daiichi Life Group, Japan's largest listed life insurance company, is taking on a role typically reserved for banks by reaching out directly to companies to gauge interest in issuing bonds, according to a report. Managing Executive Officer Kazuyuki Shigemoto disclosed that the Tokyo-based firm has been contacting dozens of companies that either have never issued bonds or have done so infrequently, offering to become a significant purchaser if they proceed with the market entry.

The surge in Japan's bond yields, reaching three-decade highs, has attracted investors like Shigemoto, who are on the hunt for additional returns. One potential avenue is corporate debt, which can provide premiums above those of sovereign bonds. This move could potentially lure foreign investors, who have been urging Japan to establish a market for "junk bonds" – debt instruments offering higher yields in exchange for increased risk.