Norinchukin: CLO investment balance is 7 trillion yen: New investment restraint policy

Norinchukin: CLO investment balance is 7 trillion yen: New investment restraint policy

Norinchukin: Investment in CLO

Norinchukin holds a large amount of CLO (a financial product made by collecting loans) of an American company.

Recently, risks have also been pointed out, and we have indicated a policy of reducing investment in the future.

Norinchukin Bank announced that the current investment balance is in the 7 trillion yen range.

About CLO:

It is a financial product made by collecting loans for American companies with low creditworthiness.

Yields are high because of the risk,” so Japanese financial institutions have increased their investment in search of advantageous managers.

Norinchukin: Interim results

In the mid-term settlement on the 21st, Norinchukin revealed that the CLO investment balance at the end of September amounted to approximately 7.9 trillion yen.

Norinchukin said that “the yield of recent CLO is not as high as before” and will continue to suppress new investments.

NHK News

https://www3.nhk.or.jp/news/html/20191121/k10012186091000.html?utm_int=news-business_contents_list-items_006