Rebirth 79: I opened a bank in the United States

Chapter 998 Changes in the Japanese Bond Market

On January 1990, 1, the ditty "Nowhere to Escape", which had been croaking for many days, finally stopped.

That night, Carter stood in the crowd and watched a team of "seals" come forward and put handcuffs on Noriega.Then, boarded a Black Hawk helicopter and left Panama City.

The next morning, Mr. Bu delivered a speech at the White House, announcing the official end of the "Just Cause" operation.

从89年12月20日，到90年1月4日，历时刚好半个月！
On the 4th day, Major General Thurman, commander of the US Southern Command in Pakistan, held a celebration dinner.After the celebration, starting from the next day, that is, January 1, the dispatched troops began to withdraw one after another.

By the time Carter arrived at Ratwiss Air Force Base, a base northeast of San Francisco, it was January 1.The airport at the base was surrounded by family members who came to welcome their relatives.

The moment the transport plane lands and the hatch opens, the vacation begins!

Carter also saw his family members in the crowd, and was sent out for the first time. This is a big event in the eyes of the Black family!
"I am back!"

Contrary to grandpa's pride and grandma's worry, the expression on Carter's face was completely opposite: Carter was very calm and indifferent.

This time, Carter didn't fire a single shot!

That's right, not a single shot was fired!
He was under heavy protection from beginning to end. During these fifteen days, Carter felt that the biggest threat he encountered was the bird that fell from the first night and almost hit him.

Such experience in a war zone, war experience, of course, Carter would not be hypocritical to say that this is not good.But objectively, there is indeed a lack of so-called iron and blood, or feelings or something.

At least there is no such excitement of "my master is finally back alive"!
The time was not long, and the process was relatively uneventful. Carter felt more like he was taking an armed tour group out for a stroll.
"Okay, okay, just come back! Let's go, your Uncle Oni and the others went to book a restaurant, and it should be done by now! That kid from Levante has been clamoring to hear you tell stories about the war zone!"

Feeling the strength of the old man's pat on his shoulder, Carter left the base with his family.

At the luncheon, Carter was a little speechless looking at Levante, who was excited and regretted that he could not get a fight in the US military stationed in Japan.But didn't say much.
In the following days, I took the family around in California, and finally sent them back to Texas.Half of the holidays are over!
For the remaining half of the time, Carter had already planned.

"Go to the Tokyo Stock Exchange!"

In the taxi waiting area at Haneda Airport, Carter got into a taxi.

"Without a watch, the price is 10 yen! Or 850 US dollars!"

"Swipe your card!"

Ignore the exorbitant price and the service attitude that is completely inconsistent with the price.Carter directly took out the card to swipe the money. Compared with these expenses, Carter wanted to find out more about the problems mentioned by Akio Toyoda before his trip to Panama.

Compared to inquiring from top to bottom, Carter feels that sometimes, if you change your mind and observe from the bottom up, you might see something different.

And the Tokyo Stock Exchange did not disappoint Carter!
At this time, the Tokyo Stock Exchange has already shown signs of a stock market decline.Now the interest rate has been increased from the original 2.5% to 6%, which is already a very high ratio in terms of the benchmark interest rate.Even in Xiaobai's leeks, he can realize that something is wrong!
The enthusiasm for speculation is decreasing, which reflects the decline in the trading volume and turnover of the Tokyo Stock Exchange at this time.However, what made Carter feel enlightened was not the securities trading, but the bond market!

"Mitsubishi Heavy Industries, Asano Cement, Nissan Insurance, Asahi."

In the bond market, the number of listed corporate bonds is almost the same as that of the securities next to it.In other words, almost all companies that can issue stocks have issued bonds here.In stark contrast to the slowness of the stock trading next door, the bond market is booming.

The advent of the era of high interest rates means that the interest rates of these newly issued three-year and five-year bonds are also rising simultaneously.People who predicted that the stock market was about to fall turned their attention to the bond market.

Taking out his notebook, Carter started counting the bonds issued in 86 until now.Then, it can be clearly found that since 87, the number of tradable bonds in the Japanese bond market has risen to a considerable extent.

At this time, it happened at the same time as Japan was forced to cut interest rates under the pressure of Baker!
And combined with this, Carter reverse scrutiny
Carter still remembers that at the earliest time, when the old finance minister was there, he came to Japan to talk about something called "financial market opening"!

Japan's expression back then was "step by step", while the United States pursued "leapfrogging".In any case, the opening of the financial market is inevitable, and also in that year.
Bond issuance was originally said to be a registration system, but the issuance rules that required registration and approval by the Ministry of Finance of the Ministry of Finance were actually approval-based issuance rules, and changed to a registration system.Of course, the name is still the same, but the permission to issue bonds for companies, in that year, became quite easy to pass!

Of course Carter knew that this was a pilot.

Before any major policy is implemented, it will be partially piloted to verify its feasibility.This is understandable, but the interesting part is.
This is a corner that has always been easily overlooked!
If it weren't for Akio Toyoda's knowledge that it was difficult for Japan's large commercial banks to issue loans, Carter himself would not have noticed the changes in the Japanese bond market.

Likewise, in the eyes of other people, even the Japanese.

They reject the "leap-forward" opening up, and their biggest concern is the invasion of foreign capital.Therefore, the direction of their research is how to avoid excessive opening without offending the United States, or how to continue to maintain the original level of foreign exchange control and relax it to a limited extent.

As for Japan's domestic financial market reform, correspondingly, it seems that such a rule has been tossed out as if it doesn't pay much attention to it!
If the restrictions on corporate bond issuance are simply relaxed and the threshold for corporate bond issuance is lowered, this may not be a problem.However, at that time, there was still a problem of low interest rates!
The low benchmark interest rate also means that the cost of corporate debt financing will be very low!
There is no need to pay for equity, and there is no need to bear high interest rates. Even the interest rate of directly issuing bonds to market traders may be lower than the interest rate of borrowing from banks in the same period!

After all, the composition of bank loan interest rate is composed of risk-free interest rate (base rate) + risk premium + bank profit. When issuing bonds directly in the bond market, the interest rate that these companies need to give is only base rate + investor profit. risk premium
Different banks have different credit evaluations and risk ratings for a company, and the same goes for market investors!
Some people think that the company's default risk is high, while others think it is low.But compared to seeking bank loans and issuing bonds publicly, the source of creditors will not be so single!

In other words, for enterprises, they can completely ignore the risk premium part.There will always be people who buy and there will always be people who don't, they just need to make sure they can raise enough money and that's it!
At this time, combined with the market atmosphere in Japan over the past few years
(End of this chapter)