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Japanese Investors Sell Foreign Bonds at Record Pace

 
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Japanese investors sell foreign bonds at record pace, ending years-long buying spree.

Description: A closeup of a graph showing foreign bond sell-off by Japanese investors.

Japanese investors have ended their long-term buying spree of foreign bonds, selling off at a record-setting pace in 2022. This has caused much upheaval in the bond market, with investors unsure as to where the market will move next. With the current yield level of around 9%, many investors have decided to invest in invest-grade debt, providing an attractive entry point from an income perspective. REITs, however, offer very little yield advantage compared to bonds in the current environment, which does not bode well for the future. In addition, with the emergence of junk bonds, investors may be better off invest in invest-grade debt now.

Smart beta exchange traded fund iShares invest Grade Bond Factor ETF (AMEX:IGEB) has made its debut in 2017 and provides investors with a broad range of invest. According to a survey by Lendingtree, more than half of taxpayers who receive refunds decide to save or invest the money. On Wednesday, the Indian central bank will conduct auctions for the country's maiden pair of sovereign green bonds worth Rs 8000 crore, which is a sign of India's commitment to green finance.

Unfortunately, the New Year rally in U.S. corporate bonds has started to lose momentum, as investors become skeptical of recent optimism about a recovery in the bond market. As the bond market continues to change, investors must be careful to make informed decisions regarding their invest, as bond market timing is not easy.

Labels:
foreign bondsbond marketreitsinvestment-grade debtjunk bondssmart beta etflendingtreesovereign green bondsindian central banku.s. corporate bondsAMEX:IGEB

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