Japan's banks are transmitting lower interest rates to AsiaRobert McCauley, BIS

Published: Oct. 2, 2017, 9:16 a.m.

b'Japanese banks, insurance companies, and pension funds are investing in the US and other financial markets, due to the low or even negative interest rates at home. But their demand is pushing up the price of hedging, so when their dollars get converted back into yen, they lose money along the way.\\n\\nRobert McCauley, senior adviser at the Bank for International Settlements, told the audience at the Asian Development Bank Institute\\u2019s Annual Conference 2016 that strong demand by Japanese entities was pushing up the price of yen\\u2013dollar swaps, an instrument to hedge foreign investment. In short, it\\u2019s becoming more expensive for Japanese investors to get out of yen and into dollar.\\n\\nRead the transcript\\nhttp://bit.ly/2yieiFV\\n\\nWatch the full presentation\\nhttp://bit.ly/2xTMvdW\\n\\nKnow more about ADBI\\u2019s work on low interest rates\\nhttp://bit.ly/2xMCRI1'