Shifting the asset allocation of Japan’s largest pension fund back towards domestic bonds could help stabilise the JGB market should yields start to surge again. However, it would come at a sizeable fiscal cost, particularly if the GPIF reduced its holdings of equities.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services