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Japan's Big Bank Takes a Step into the CLO World
USAThursday, November 13, 2025
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A major player in Japan's finance world is making a move.
The Move
- Mitsubishi UFJ Asset Management is set to launch its first fund focused on collateralized loan obligations (CLOs).
- This is a response to a government push for financial companies to create offerings that provide better returns to Japanese investors.
The Fund Details
- The fund will primarily hold dollar-denominated floating-rate loans given to US companies.
- Launch Date: January
- Initial Size: Several billion yen
- Head of Credit Investment Division: Kosuke Nagata
Why It's Interesting
- CLOs are investments that bundle leveraged debt.
- Pros: Can offer higher returns.
- Cons: Come with higher risks.
- Significance: A big step for Mitsubishi UFJ, Japan's largest bank, to enter this market.
The Big Question
- Will this move pay off?
- CLOs can be complex and risky.
- Will Japanese investors be ready for this?
- Only time will tell.
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