MUSI news

• Economic View: impact of Euro government rating downgrades

  Economic View: impact of Euro government rating downgrades

  16th January 2012

  In today's Economic Viewpoint, Brendan Brown, Head of Economic Research at Mitsubishi UFJ Securities International, discusses the impact of the widely-expected European government rating downgrades by S&P.

   

  Please click here to read the full report or see below for the key messages.

   

  • The most significant aspect of the S&P credit rating downgrades for European sovereigns is the differentiation between Germany on the one hand and France on the other. This differentiation has political consequences which could add to EMU disintegration risks in the long run.
  • Credit ratings are only one input into investor decision making about the merits of holding particular government bonds in their portfolios. Such analysis must also consider the risk of inflation surprise.
  • An overall investment rating to include both conventional credit risk and inflation surprise risk would plausibly put Japan ahead of the US, and France well behind Germany.

• Mitsubishi UFJ Financial Group named PFI Global Bank of 2011

  Mitsubishi UFJ Financial Group named PFI Global Bank of 2011

  13 January 2012

  We are delighted to announce that Mitsubishi UFJ Financial Group, MUSI's parent company, was named Global Bank of the Year at the 2011 PFI awards.

  At a time when the activity of many banks was constrained by the Eurozone crisis, the judging panel commended MUFG on upping its involvement in the project finance sector to become a key player in the energy and infrastructure funding markets. Please click here to view the story on PFI magazine's website.

• Economic View: How should asset classes be re-weighted?

  Economic View: How should asset classes be re-weighted?

  6th January 2012

  In his daily Economic Viewpoint, Brendan Brown, Head of Economic Strategy at Mitsubishi UFJ Securities International, challenges international investors: if the Euro is not a top international currency, why are they holding any in their portfolio and how should other asset classes be re-weighted?

  Please click here to read the full report or see below for the key messages:

  • The Draghi euro and ECB have absolutely no resemblance to the hard Deutsche Mark or old Bundesbank. And yet many international investors find themselves with the Euro in their monetary portfolios, based on a long-gone DM past.
  • As international investors consider how to reduce their share of the Euro, how should they re-weight other asset classes?
  • The conclusion here is that the US dollar share should be re-weighted upwards but that other currencies do not merit such a step.