Nikkei is sying that Japan’s top three banks have cut exposure to corporate debt in PIIGS countries by 12% to $22.6B in the quarter. It’s hard to say how these debts may have performed with certainty but in general, they are losers.
Exposure to sovereign debt is down 4% but rests at a paltry $4.1B. Azumi was probably hoping they held more sovereign debt but there are still some risks on the corporate side.
Unless there are headlines suggesting the corporate is tied up in financials, there is no risk to JPY here.
