Post Bank Q2: JGBs held-to-maturity fall, proceeds sent abroad

Holdings of Japanese central and local government debt at Japan Post Bank fell by 5% in the six months ending 31 September 2016 to reach 93,338.1 billion yen, accounting for 45.9% of the bank’s portfolio according to its just-released report.

The chief beneficiary was an increased allocation to foreign investment trusts which rose from 12.4% of investments to 13.9% valued at 28,409bn yen.

Domestic stocks do not feature at all.japan-post-bank-assets-at-2016-9-31

Only about a third of the Bank’s Japanese Government Bond holdings are shown in its report as ‘available-for-sale-securities’ [see lower table], implying that the other twojapan-post-bank-assets-for-sale2thirds are held to maturity.

Like its sister institution Japan Post Insurance [see posting above],  the Bank is no longer accumulating JBGs but buying other assets with the proceeds of those which mature.

© 2016 Japan Pensions Industry Database/Jo McBride. Reporting on, and analysis of, the secretive business of Japanese institutional investment takes big commitments of money and time. This blog is one of the products of such commitment. It may nonetheless be reproduced or used as a source without charge so long as (but only so long as) the use is credited to and a link provided to the original text on that site.

This blog would not exist without the help and humour of Diane Stormont, 1959-2012

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