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Ross Perot Jr., whose family is one of the largest independent property developers in the country, warned of a looming real estate recession if banks don’t start lending again.
The US economy showed signs of cooling in recent weeks as hiring and inflation eased slightly, the Federal Reserve said in its Beige Book survey of regional business contacts.
San Francisco Mayor London Breed on Wednesday unveiled a two-year budget that increases police and homelessness funding as the city tries to lure businesses back to its hollowed-out downtown.
Federal Reserve Governor Philip Jefferson signaled the central bank is inclined to keep interest rates steady at its next meeting in June to give policymakers more time to assess the economic outlook, but such a decision wouldn’t mean hikes are finished.
The Canadian economy started off strong in the second quarter, extending a streak of better-than-expected growth and boosting the likelihood of another Bank of Canada rate hike.
Jan 17, 2022
, Bloomberg News
(Bloomberg) -- Japan is using the corporate bond market to tackle the challenge of having the world’s oldest population.
Daiwa Securities Living Investment Corp. became the latest issuer to tap the market for social debt on Tuesday with the sale of a 10-year bond to refinance investments in facilities for the elderly at a coupon of 0.46%.
Although the amount raised was only 2 billion yen ($17.5 million), the bond follows offers last year from Daiwa House Reit Investment Corp., United Urban Investment Corp. and Kenedix Residential Next Investment Corp. Those note sales collectively totaled 9 billion yen ($78.6 million) to fund housing for seniors, capitalizing on skyrocketing demand for ethical and green bonds globally.
The Japanese government is looking to boost more social bond issuance from the corporate sector. With a bigger proportion of senior citizens relative to the population than any other country, a growing need for more nursing homes and a better safety net for the elderly will increasingly drive demand.
“There will be more social bonds whose proceeds are earmarked for services linked to elderly services, education and healthcare,” said Kazushi Shimizu, head of the sustainability solutions department at Daiwa Securities Co.
Also on Tuesday, the Tokyo Metropolitan Government said it will use the funds raised via its planned social bond for programs linked to disaster prevention measures as well as helping children with special needs and the elderly.
The coupon offered by Daiwa Securities Living is higher than the average for 10-year ESG bonds issued last November from Japan real estate investment trust funds.
But yields on Japanese government bonds with the same tenor have risen, tracking a rally set off by the prospect of U.S. monetary policy tightening.
“It’s not a big issuance amount so there’s probably enough demand but the spread is tight so this deal is not offering attractive returns despite the higher coupon,” said Masayuki Tsujino, senior fund manager at Asahi Life Asset Management Co.
(Adds pricing details in second paragraph)
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