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The BOJ Is Collecting Tens Of Billions In Dividends From ETFs It Owns

by Tyler Durden
Monday, Apr 10, 2023 - 04:40 PM

By Hideyuki Sano, Bloomberg markets live reporter and strategist

Amid all the scrutiny on the massive amount of debt the Bank of Japan owns, the new governor’s stance toward the 48 trillion yen ($364 billion) of stocks it holds is coming into focus too. Those shares, held through ETFs, have acted as an overhang in the market amid speculation that Kazuo Ueda will embark on policy normalization.

The ETFs, which had unrealized gains of 11 trillion yen in the six months to September, may stay his hand though by acting as a hedge against potential losses from bonds, says Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

Also at play is the rich dividends the holdings provide, almost quadrupling to more than 1 trillion yen through September from the same period five years earlier, according to the BOJ’s earnings reports.

https://www.zerohedge.com/markets/boj-collecting-tens-billions-dividends-etfs-it-owns