As the global recession continues, most financial institutions are finding it difficult to raise funds.  Many firms, however, have found an unlikely haven for raising capital: Japan.  The first quarter of 2009 saw outside firms raise nearly $5 billion via Samurai bonds.  If the trend continues, it could set a record.  Samurai bonds are yen-denominated bonds that are sold to Japanese investors.  A diverse group of companies have gone to Japan so far: Deutsche Telekom, Renault, and the Commonwealth Bank of Australia. What make Japanese Investors so eager to buy foreign debt?  Despite the global recession, Japanese households still have money to invest.  The island nation's population is older than most countries and also tends to save more per capita.  As retirees look to stretch their retirement moneys further, there has been popular disappointment in the low domestic yields.  The nation's 5 year government bond yield is only 1.32% and the Nikkei has been hammered in the market since the 1980s. Additionally, looking to outside investments would usually require that the Japanese denominate their investments in foreign currencies.  This strategy is too risky for Japan's aging demographic.   When Samurai bonds finally hit the market, it supplied the nation's demand for low risk, medium yields, investments that accommodated the culture's buy-and-hold mentality.  Foreign firms looking to raise money here were naturally seen as a god-send.  Perhaps, outside firms were more excited than the Japanese investors. Since the beginning of 2009, U.S corporate bond issuance plummeted 46% to $547 billion.  Japan has literally saved dozens of firms form filing bankruptcy or helped prevent government intervention.   To help accelerate the capitalization process, a number of Japanese banks are purchasing the Samurai bonds and then securitizing them into bite size portions that individuals can add to their portfolios.  In general, according to Japanese investment banks, each bond issuance is larger than the last and they see no reason for the trend to stop.  References Andrew Morse,  Laura Santini. (2008, June 5). International Finance: Symbiosis in Samurais; Japanese Investors, Corporate Issuers See Bonds' Benefits.  Wall Street Journal  (Eastern Edition),  p. C.2.  Retrieved May 7, 2009, from ABI/INFORM Global database. (Document ID: 1489942561).