Key Takeaways
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- Berkshire Hathaway is preparing a yen-denominated bond sale, its second issuance in Japan this year.
- The move has reignited speculation that Warren Buffett may be planning new investments in Japanese trading houses.
- Shares of Sumitomo, Mitsui, and Itochu rose up to 3.8% on optimism that Berkshire sees value in the sector.
- Since 2019, Berkshire has invested nearly ¥2 trillion ($13B) in Japan’s top five trading firms.
- Global corporate bond issuance has hit a record $6 trillion in 2025, fueled by easy credit and AI-driven investment demand.
Berkshire Returns to the Yen Market
Berkshire Hathaway Inc. has hired banks for a potential yen-denominated bond offering, according to sources familiar with the matter. The deal would mark the conglomerate’s second yen bond sale this year, following a surge in global debt issuance amid favorable financing conditions.
The Omaha-based firm has become one of the largest foreign borrowers in Japan, raising close to ¥2 trillion since 2019. Its return to the yen market has prompted analysts to speculate that Berkshire may be gearing up for new investments in Japan’s undervalued trading firms.
Japan Investments and Market Reaction
Berkshire first disclosed stakes in Japan’s top five trading companies—Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp.—in 2020. The group’s share prices have more than tripled since Buffett’s initial purchases.
T&D Asset Management strategist Hiroshi Namioka said Berkshire’s bond sale “suggests it sees continued opportunity in Japanese trading companies, which remain cheap by global standards.”
Following the report, Sumitomo rose 3.8%, Mitsui gained 3.1%, and Itochu advanced around 3%, outpacing the Topix index.
Valuation and Strategic Outlook
Despite Berkshire’s pledge to keep its holdings below 10% per company, the five trading houses have since relaxed that limit, allowing incremental increases.
“Over time, you will likely see Berkshire’s ownership of all five increase somewhat,” Buffett noted in his 2025 shareholder letter.
The move reinforces Buffett’s long-term view that Japanese trading houses remain undervalued, offering strong dividend yields and global commodity exposure at attractive multiples.
Global Bond Issuance Hits Record
The yen bond plan comes as global corporate borrowing exceeds $6 trillion in 2025, driven by funding for AI infrastructure, M&A, and capital expansion. Berkshire’s AA credit rating allows it to issue large yen tranches with spreads slightly above local corporates of similar quality.
Still, foreign issuance in Japan remains subdued—¥1.8 trillion year-to-date, the lowest in four years—due to rising interest rates and the prospect of further Bank of Japan tightening.
Haruyasu Kato, fund manager at Asset Management One, said,
“The biggest focal point will be the total issuance amount—it will serve as a litmus test for investor sentiment in Japan’s credit markets.”
