politics

Japanese Banks Experience Surge in Hybrid Bond Issuance for Regulatory Capital

29 Mayıs 2026Japan Times

Japanese banks are experiencing a surge in the issuance of Additional Tier 1 bonds, which are among the riskiest forms of bank debt. This trend is expected to reach a record high in 2023, indicating a significant shift in how banks are funding their regulatory capital needs.
The rise in these hybrid bonds reflects both the banks' strategies to bolster their capital buffers and the growing investor appetite for higher-yielding securities.
In recent years, Japanese banks have faced pressure to strengthen their capital positions due to evolving regulatory requirements and economic challenges. The growth in hybrid bonds is a response to these pressures, allowing banks to meet capital requirements while also appealing to investors seeking yield in a low-…
The boom in Additional Tier 1 bond issuance suggests that Japanese banks are navigating a complex regulatory environment while also seeking to attract investors looking for higher returns. This trend may indicate a broader acceptance of risk among investors, but it also raises questions about the long-term sustainab…

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This summary is based on information available as of October 2023 and may not reflect subsequent developments.