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Uridashi bonds are sold directly to the Japanese retail investor market and are bonds that are denominated in high-yielding foreign currencies like the AUD. This gives investors a higher return than they would get in their home market where domestic interest rates are low.
In March, Japanese demand for AUD Uridashi showed the best month for deals since June 2012. A total of $972m of deals settled during the month. The highlight was a $418m deal for TMCC. The rise in issuance could also simply reflect the current redemption hump. March had a total of $2.1bn and Q1 had a total of $4.5bn of redemptions. Around $500m of issuance in expected in April.
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