Japan enhances investor protections for lower-rated companies' bonds, following Unizo Holdings' default.
Japan is enhancing investor protections, like covenants, to attract lower-rated companies into the corporate bond market. This move comes after dissatisfaction with lack of protection during Unizo Holdings' default. The Japan Securities Dealers Association's working group plans to implement Change of Control clauses and reporting covenants for bonds rated BBB and lower, aiming to diversify the market and offer a wider range of investment opportunities.
July 08, 2024
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