“Norinchukin Bank will consider investing in a range of assets as it braces for massive losses on the sale of roughly 10 trillion yen ($63 billion) in US and European sovereign bonds.”
“Norinchukin’s losses on bonds ballooned after it misjudged how long interest rates would stay elevated. A sharp rise in foreign-currency funding costs wiped out returns from bonds bought when their yields were lower.” (Norinchukin is not the only bank with this problem.”
Let’s see whether this is a one-off or a bell weather.
Japan Bank to Overhaul Investments as Wrong-Way Rate Bets Trigger Bond Losses (yahoo.com)