BOJ’s outlook for Reit market in 2017 - FT
|The Financial Times (FT) carrying an article on Wednesday, providing some thoughts as to what the Bank of Japan (BOJ) will be doing in the real estate investment trust (Reit) market in 2017.
Key Quotes:
“Some foresee the BoJ tapering into this, perhaps in the form of a raised target for long-term interest rates, or by letting 10-year JGB yields drift above zero per cent.”
“The same soothsayers, dizzy at the thought that Japanese stocks may now have serious momentum of their own, wonder how closely the BoJ will stick to its ¥6tn-a-year, market-supportive target for purchasing exchange traded funds (ETFs).”
“It is a reasonable doubt: it is getting practically harder for the BoJ to meet that target and in July the market watched the weird spectacle of asset managers dreaming up ETFs that the general market did not want simply so the BoJ could buy them.”
Nomura’s Tomohiro Araki noted, “Enter the Reit market, where the BoJ sets itself (and met in 2016) a very modest annual purchasing target of ¥90bn. Given the restrictions on the credit ratings of individual Reits it can buy, the BoJ probably will not raise that target”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.