The Decline of Japanese Corporations as Illustrated by the CDS Market
By Martin T., Macronomics
“What is at a peak is certain to decline. He who shows his hand will surely be defeated. He who can prevail in battle by taking advantage of his enemy’s doubts is invincible.” - Cao Cao
The CDS market is a clear illustration of the surge of Chinese and Korean corporates versus the slow decline of Japanese corporates – source Bloomberg:
The Itraxx Ex-Japan CDS index above (Blue line) is primarily weighted in Chinese and Korean corporates whereas the Itraxx Japan CDS (Red line) is very much weighted by the following sectors: Technology, Utilities, Shipping and Steel which are currently under tremendous pressure at the moment.
“Nature’s laws must be obeyed, and the period of decline begins, and goes on with accelerated rapidity.” - Warren De la Rue, British Scientist.
2 Comments
Just look around, do you see more Samsung or Panasonic, More Sony or Apple…
Yep, no innovation any more from Japan. Just stagnation.
Apple is creeping in the same direction too IMO.