Japan’s Firms Shun Longer Tenor Bonds as Yields Jump, Risks Rise

Bonds with the longest maturities are disappearing from Japan’s corporate market as surging yields push companies into shorter debt, saving costs for now but leaving them more exposed to refinancing risks.

Corporate bond sales this fiscal year are set to top last year’s record, with about 75% in maturities of up to five years and 22% in over five years and up to 10 years. Bonds with tenors of more than 20 years have almost vanished, with the only issuer of 30- and 40-year deals being University of Tokyo, one of Japan’s most prestigious universities.