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Berkshire Hathaway's Greg Abel Downplays Impact of Rising Japanese Bond Yields on Trading Firms
Finance · Financial Conglomerates · cnbc · 2026-09-02
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Berkshire Hathaway CEO Greg Abel confirms that Japan's rising bond yields pose no immediate threat to the major trading houses in which the firm holds stakes.
What Happened
Assessment of Japanese Yields: Berkshire Hathaway CEO Greg Abel stated that the recent surge in Japan's 10-year bond yields to 30-year highs is not currently hindering the operations of the country's major trading houses. Despite the upward trend in rates, Abel noted that these levels remain modest compared to global benchmarks like the U.S. 10-year Treasury, which recently surpassed 4.8%.
Strategic Investment Outlook: Berkshire maintains significant positions in five major Japanese trading firms, including Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. Abel emphasized that these holdings are viewed as long-term investments intended to be held for decades, with the company actively exploring further collaborative opportunities.
Ownership and Debt Strategy: Berkshire has secured permission from the five trading houses to increase its ownership stakes beyond the initial 10% threshold. Furthermore, the company plans to continue issuing yen-denominated debt as needed, indicating that the current interest rate environment does not deter their financing strategy in the region.
Relationship and Growth: Abel highlighted the strength of the relationships built with these Japanese partners over the past six years since the initial investment. The trading houses have delivered substantial returns for Berkshire, and management remains optimistic about the potential for continued value creation both domestically in Japan and through international ventures.