Toyota Issues Bond At A 0.001% Coupon, Japan's Lowest Ever

Zero Hedge ^ | Jun 7, 2016 | Tyler Durden

[Leaning Right]

(snip) overnight a Toyota Motor unit sold yen bonds with the lowest coupon ever for a Japanese company. Toyota Finance Corp issued 20 billion yen ($186 million) of notes at a yield of 0.001%, according to a filing with the nation’s Finance Ministry. That’s the lowest coupon ever for a regular bond by a domestic company that isn’t backed by the government, according to data compiled by Bloomberg.

[Leaning Right]

Better grab these 0.001% bonds up before the yield drops to 0.0001%.

[HangnJudge]

Harbinger of Deflation?

[garyb]

eek. why bother?

[Leaning Right]

Why bother?

That's what I can't figure out. Who would buy those bonds? Maybe someone who'd rather have his money in a Toyota bond than in a bank?

[StormEye]

"Toyota Finance Corp issued 20 billion yen ($186 million) of notes at a yield of 0.001%,..."

Literally not worth the paper they're printed on.

[Pearls Before Swine]

Better ZIRP than NIRP.

It just shows that Toyota isn’t considered quite as good a credit as the Japanese government, which sold 10-year Japanese Government bonds at a rate of -0.024% in February.

[Dr. Sivana]

Who would buy those bonds? Maybe someone who'd rather have his money in a Toyota bond than in a bank?

Are the Japanese banks now yielding Negative interest rates? I thought that might be the case, and an explanation.

[Former Proud Canadian]

Harbinger or result?

[garyb]

made me look.

http://japan.deposits.org/

timed deposits: 0.10%
savings accounts: 0.02%

at my Michigan based credit union:

timed deposits (CDs) range from 0.20% (3 month) to 2.0% (five years)
savings accounts: 0.10%

[PAR35]

When the alternative is negative rates/storage fees for your cash, .00001 returns don’t look that bad.

[Steve_Seattle]

Isn’t this just one more sign that the world’s economy is built on sand, and that even our pathetic “recovery” is just another bubble?

[plain talk]

For years I have bothered with super low interest instruments. I’m invested in stocks and bond mutual funds and the rest — a huge chunk - is in CASH

[Purdue77]

Buy them now. Your investment is guaranteed to double in 72000 years. Such a deal.

[zeugma]

The only thing that could make bonds of this nature make any sense at all are negative interest rates. For the issuing companies though, getting credit on that kind of term is a pretty good deal.

[plain talk]

correction: I mean I have NOT bothered with low interest rate instruments.

[bert]

We didn’t get to look at the collateral. Perhaps it includes plant and stuff in the USA and elsewhere that is considered safer than anything in Japan