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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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