Berkshire’s Greg Abel says Japanese bond yields are not a major issue for trading houses
Berkshire Hathaway Japan investments stay steady as bond yields rise modestly Greg Abel says trading houses remain resilient; see why Berkshire still backs them
Berkshire Hathaway CEO Greg Abel said rising Japanese bond yields are not currently creating a major problem for the trading houses in which Berkshire has invested. He made the comments on CNBC’s Squawk Box while visiting Tokyo on Wednesday.
Abel noted that Japan’s 10year bond yield recently reached a 30year high, but said the levels remain modest compared with yields in other major markets. He added that none of the trading companies Berkshire backs raised yields as a fundamental concern.
Berkshire owns more than 10% of five major Japanese trading houses: Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo. Abel also said Berkshire expects to continue raising yen debt when appropriate and described the investments as longterm holdings built on strong relationships with the companies.