Amid tariff turmoil, Buffett continues to issue Japanese bonds, but the scale hits a historic low

Amid escalating global trade frictions and turbulent financial markets, many Japanese companies have canceled bond issuances, while Berkshire Hathaway has chosen to issue bonds, albeit at the smallest scale ever.

On Friday, Berkshire Hathaway, led by Buffett, successfully issued bonds worth 90 billion yen (approximately $628 million) in Japan, marking the company's smallest yen bond transaction in history.

This bond issuance is divided into six maturities, ranging from 3 years to 30 years. The yield premiums on all bonds are higher than the issuance levels of Berkshire last October, with the 3-year bonds accounting for the largest share, yielding a premium of 70 basis points, significantly higher than the previous 49 basis points.

In the current turbulent financial market, many issuers are choosing to wait and see, including Japanese beverage giant Suntory Holdings and food manufacturer Nissin Foods, but Berkshire continues to push forward with its issuance.

Currently, investors' attitude is that even if interest rates are high, they prefer to wait for market stability before making decisions. Shunsuke Oshida, head of credit research at Manulife Investment Management Japan, pointed out:

"Generally speaking, even if issuers are willing to offer the highest premiums allowed by the market, investors may not necessarily bite in the current market environment. While they hope to increase exposure, they are more willing to wait for market stability before taking action."

The investment community has always closely monitored Buffett's financing and investment trends. Since 2019, Buffett has been active in the Japanese corporate bond market, not only due to its high credit ratings but also because his investments in Japanese companies often boost market sentiment.

Just last month, Berkshire further increased its holdings in Japan's five major trading companies (such as Mitsubishi Corporation and Itochu Corporation). Buffett stated in his February letter to shareholders:

"These five companies operate in a manner very similar to Berkshire, and over time, our respect for them has only deepened."

This statement not only boosted market confidence but also attracted a large influx of foreign capital into the Japanese stock market, propelling the Nikkei 225 and TOPIX indices to historical highs in 2024. However, as of now, both benchmark indices have retreated by more than 10% in 2025, due to market concerns that escalating frictions may hinder global economic growth