Berkshire CEO Greg Abel says Japanese bond yields not a challenge for trading houses right now
In an appearance on CNBC's "Squawk Box," Greg Abel said that yields in the country are still relatively low.
TL;DR
- Berkshire Hathaway CEO Greg Abel asserts that rising Japanese bond yields are not impacting major trading houses invested in by the company.
- Despite Japan's 10-year bond yield reaching a 30-year high, Abel described the yields as manageable and relatively modest compared to global rates.
- Abel confirmed that none of the trading companies cited the yields as a significant challenge.
- Berkshire Hathaway holds substantial stakes in five major Japanese trading houses: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo.
- The company received permission to exceed its initial 10% stake limit in these firms.
- Abel expects Berkshire to continue raising debt in yen despite the current yield environment.
- These investments are considered long-term, with strong returns and growing relationships with the trading houses.
- Berkshire is exploring further investment opportunities in Japan and abroad based on these relationships.