Japanese Equities: Discounting Armageddon
Despite Japan’s gloomy macroeconomic backdrop, investors should stay invested in equities, implementing through managers with coherent bottom-up, stock-selecting strategies.
Asia/Pacific
The Debate About Japanese Banking Reform
Why has the Japanese government’s recent burst of activity about finally cleaning up its banking system generated so much controversy?
Asian Buyouts
An overview of the Asian private equity market since the 1997 financial crisis, using criteria such as deal flow, operational experience, management teams, debt availability, currency risk, valuations, and exit environment.
After the Crisis: Asian Private Equity Investing
Typically, private equity investors interested in Asia have been more impressed with its potential than with the tangible opportunities—but this may be about to change.
Economic Growth in Japan–the Moment Passes
Springtime in Japan brought welcome signs of economic recovery, but these moments proved to be as fleeting as the bloom of cherry blossoms.
Why We Consider Japanese Equities Overvalued
Although several valuation metrics suggest that Japanese equities are fairly valued we consider them overvalued because of the precipitous state of the economy.
Japan’s Bank Crisis
As of April 1, 2002, the Japanese government will cease guaranteeing time deposits in excess of ¥10 million ($75,200) against the possibility of bank failure, leaving an estimated ¥200 trillion ($1.5 trillion) in bank deposits unprotected. Proponents of postponement of the deadline are worried that the limit on deposit insurance will prompt bank runs, especially…
Japanese Distressed Investing
An assessment of the investment opportunities resulting from a debilitating combination of successive recessions in Japan and the reluctance of government officials to enact and enforce financial sector reforms. Key topics include market risks, supply of distressed assets, strategies to capitalize on the opportunity, and investment vehicles and fund structures.
Devaluing the Yen
The failure of conventional fiscal stimulus, the growing evidence of widespread deflation, and the impending crisis posed by mounting government debt all indicate that the authorities must attempt to reflate the economy by any means possible, including currency depreciation. However, the efficacy of yen depreciation is far from certain, as its impact on consumer prices…
Japan–When Should You Become Bullish?
Despite faint stirrings of reform in Japan, the macro environment remains inhospitable for equity investors, appealing only to dyed-in-the-wool contrarians. Two developments seem inevitable: rising inflation and a weaker yen.