Bank of Japan to close down Corporate Bond market window
Posted by admin | Under Business Monday Oct 12, 2009Bank of Japan was forced to start pumping in billions of Yen funds into the corporate sector since the end of 2009, when the global financial crisis started hitting Japanese markets also. And BoJ opened a corporate bonds and commercial purchase window, to help out the corporate sector with cheap short term and medium term funds.
The strong recovery in the corporate bond markets and also the stock markets have revived the ability of corporate sector to raise cheap funds directly from these markets.
Hence BoJ is planning to close down the corporate bond markets window on December 31st 2009, as per original schedule. That is indeed a positive signal about the state of Japanese corporate sector.