Asian bonds are reaping the benefits of Japan¡¯s ageing population like never before.
Record amounts of Japanese cash are flowing into the region¡¯s fixed-income markets as the demands of the world¡¯s oldest population force the nation¡¯s pension funds to load up on higher-yielding assets overseas.
Japan¡¯s $1.3 trillion Government Pension Investment Fund, the largest globally, said it¡¯s cutting holdings of local bonds that offer the world¡¯s lowest yields and seeking better returns abroad to meet mounting payouts. Nomura Holdings Inc. estimates such funds will pump about $200 billion into overseas bonds and stocks, purchases that will shield Asian assets against capital outflows as the U.S. Federal Reserve dials back stimulus.
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