When Yamaguchi Financial Group booked $400 million in losses from offloading Japanese government bonds last fiscal year, it thought it had cleaned the slate years ahead of schedule.
It turns out that wasn’t enough. The regional bank is now planning to dump even more JGBs from its ?2.04 trillion ($13 billion) securities portfolio, according to Chief Executive Officer Keisuke Mukunashi. The reason: faster-than-expected interest-rate hikes by the Bank of Japan.
“We compressed five years’ worth of loss-cutting into a single year,” Mukunashi said in an interview at the group’s headquarters in Shimonoseki, the westernmost city of 91AV原创 biggest island. But the pace of market moves “has been so fast that this alone hasn’t been enough to keep up,” he said.
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