Homepage
PR Newswire
Softbank has been on a spree by depending on "low interest" margin loans (66% of which are Japan issued bonds are at 1-3%).
The moment Japan is forced to increase its interest rates and there is a need for softbank to refinance, it has to pull many levers in order not to encash its losing positions. The question is when would Japan blink? The moment Japan feels it is unable to defend the USD/Yen trade and reduces QE or ups interest rates. That is when trouble looms
Softbank too is a potential contagion which the Japanese Government is also aware of due to its large debt portfoilo of 6.257 Trillion yen and hands in many industries
The moment Japan is forced to increase its interest rates and there is a need for softbank to refinance, it has to pull many levers in order not to encash its losing positions. The question is when would Japan blink? The moment Japan feels it is unable to defend the USD/Yen trade and reduces QE or ups interest rates. That is when trouble looms
Softbank too is a potential contagion which the Japanese Government is also aware of due to its large debt portfoilo of 6.257 Trillion yen and hands in many industries