Japan’s Record $100 Billion Bond Deal Bonanza Shows Cracks

Japan’s once-sluggish credit market has grown into a regional giant that saw more than $100 billion of deals in a year, but the central bank’s shift to rate hikes may be starting to weigh on its appeal.

As companies rushed to raise funds before the Bank of Japan pushes up interest rates further, their yen note offerings climbed 5.5% to a record ¥15.9 trillion ($106 billion) in the fiscal year ended March 31, according to data compiled by Bloomberg. But that sales surge may be slowing, with issuance declining 4.6% from a year earlier in fiscal fourth quarter from an 18% jump in the first quarter.