A Credit Suisse-style collapse is imminent in Japan, and there’s no easy or inexpensive fix for the disaster that’s brewing.

If Norin sells foreign bonds now, it suggests deep liquidity trouble beyond CLOs.

If Norin really offered foreign bonds to sell, it might be quite serious. Norin is the Agricultural Bank of Japan and therefore have great relations with Credit Agricole of France. In 2008, it used Credit Agricole to park its bonds in ECB balance sheet. If they need to sell now…

— Bogachan Ozdemir (@Bogachan_1971) February 20, 2025

Japan’s second-largest bank, Norinchukin, is deep in a liquidity crisis, and it’s becoming nearly impossible to hide its mounting losses.

A Credit Suisse-like Collapse is Looming in Japan

And there is no
good/easy/inexpensive way to clean up the mess

Japan's Second Largest Bank, Norinchukin, has a liquidity crisis.
Norinchukin's liquidity crisis makes it a lot harder to hide its losses

"One thing that struck… https://t.co/Ur1rRX7aBt pic.twitter.com/qPLu22JiRA

— kristen shaughnessy (@kshaughnessy2) February 19, 2025

The yield on the 10-year JGB is now 1.45%. The dollar/yen is about to break below 1.50. The fact that it is happening as gold continues to make new record highs is a warning sign that few have noticed. We are poised on the cusp of a financial crisis of epic proportions. Got gold?

— Peter Schiff (@PeterSchiff) February 20, 2025