TOKYO : When Japan's biggest banks helped finance a $34 billion deal last year for medical supply maker Medline, one of the largest leveraged buyouts since the financial crisis, the famously cautious lenders signalled their ambitions in riskier, and more lucrative, low-grade U.S. debt.
He was nevertheless positive about the prospects:"The market for non-investment grade financing will likely remain on a growth trend."Mitsubishi UFJ, which has a tie-up with Morgan Stanley, had a 1.6 per cent share of the estimated $18 billion fees in the non-investment grade debt market last year, according to Dealogic, the most of any Japanese bank.
"U.S. banks and investment banks are cutting edge in terms of their business models and governance, and we have developed our presence with talented bankers joining Mizuho," said Yusuke Kasamatsu, a senior Mizuho banker.It bolstered ties with investment-grade clients and then reached out to lower-rated borrowers as it deepened its knowledge, Kasamatsu said.
Its share of the high-yield fee pool is 1.5 per cent and has doubled in three years, according to Dealogic. As the banks pursue greater fee revenues, they need to"assess the quality and risks of their portfolios", the central bank said recently.