Credit Ratings in the Japanese Bond Market

ISER Discussion Paper No. 654

JAPANESE FIXED INCOME MARKETS: MONEY, BOND, AND INTEREST RATE DERIVATIVES, J.A. Batten, T.A. Fetherston and P.G. Szilagyi, eds., Elsevier Science, 2006

30 Pages Posted: 17 Apr 2006

See all articles by Nobuyoshi Yamori

Nobuyoshi Yamori

Kobe University - Research Institute for Economics & Business Administration

Narunto Nishigaki

Okayama University

Yoshihiro Asai

Meiji University

Date Written: March 2006

Abstract

Recently, credit ratings have been enhancing the influence on issuers as well as the national economy. This paper explains the historical development and several current features of the Japanese bond market, and discusses why credit ratings gained a significant role in the 1990s. We also present empirical research on credit ratings in the Japanese bond market, and discuss how foreign raters tend to assign lower credit ratings than Japanese ones, but that the relative ratings among raters end up being similar. Finally, we clarify the issues that remained to be solved before credit rating companies can be considered truly reliable.

Keywords: Credit Ratings, Bond Market, Japanese Economy, American Raters

JEL Classification: G24

Suggested Citation

Yamori, Nobuyoshi and Nishigaki, Narunto and Asai, Yoshihiro, Credit Ratings in the Japanese Bond Market (March 2006). ISER Discussion Paper No. 654; JAPANESE FIXED INCOME MARKETS: MONEY, BOND, AND INTEREST RATE DERIVATIVES, J.A. Batten, T.A. Fetherston and P.G. Szilagyi, eds., Elsevier Science, 2006. Available at SSRN: https://ssrn.com/abstract=895622 or http://dx.doi.org/10.2139/ssrn.895622

Nobuyoshi Yamori (Contact Author)

Kobe University - Research Institute for Economics & Business Administration ( email )

2-1, Rokkodai cho
Nada-ku
Kobe, 657-8501
Japan

Narunto Nishigaki

Okayama University ( email )

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