Major Bank Sell-Off: Should We Worry?

Recently, Norinchukin Bank, a major Japanese financial institution, announced plans to sell over $63 billion worth of U.S. and European government bonds by the end of March 2025. This decision comes as the bank aims to address significant losses stemming from its investments in low-yield foreign bonds, which have heavily impacted its financial health.

Norinchukin's CEO, Kazuto Oku, explained that the bank is undertaking this massive sell-off to reduce its exposure to sovereign interest rate risk and diversify its portfolio. The bank’s investments primarily come from funds deposited by agriculture, forestry, and fisheries sectors. By shifting its focus from government bonds to assets with corporate and individual credit risk, Norinchukin hopes to stabilize its balance sheet and mitigate further losses.
src: https://www.nochubank.or.jp/en/news_release/