On Thursday, Warren Buffett's Berkshire Hathaway issued multi-term bonds worth 281.8 billion Japanese yen (1.89 billion US dollars).

Buffett's latest move has sparked widespread speculation, with the belief that Buffett may increase exposure to Japanese assets with these funds.

Record fundraising in Japanese yen

Berkshire Hathaway issued seven series of bonds with maturities ranging from 3 to 30 years, marking the largest yen-denominated bond issuance since its first issuance in 2019.

Kato from Asset Management One stated that the highlight of this issuance is the three-year bonds with a coupon rate of 1.031%, describing it as a "remarkable trade".

According to Bloomberg data, the average coupon rate for three-year yen bonds sold this year is approximately 0.865%.

Berkshire this time raised 155.4 billion yen from the three-year bonds, exceeding half of the total amount. They also raised 58 billion yen through five-year bonds.

Previously in April, Berkshire issued ​billion yen bonds worth 263.3 billion yen.

After this bond issuance, Berkshire Hathaway became the largest foreign issuer of yen bonds this year, raising a record 545.1 billion yen.

Looking to increase exposure to Japanese stocks?

Buffett's financing in Japan has always been closely watched by stock market investors, as he uses yen funds raised in the bond market to buy shares of Japanese companies.

Earlier this year, Buffett increased his holdings in five major trading companies, driving the Nikkei 225 Index to a historic high.

Subsequently, the index retraced more than 24%, but has recently rebounded, with the latest level down 5.29% from its all-time high. However, the Nikkei 225 Index has still accumulated a more than 17% gain so far this year.

If Berkshire's investments do indeed expand into other areas such as banks, insurance, and shipping stocks as some analysts speculate, then the Japanese stock market may continue to benefit.

Haruyasu Kato, a fund manager at Asset Management One in Tokyo, said, "Berkshire being able to raise so much funds in a year demonstrates the investors' confidence in them and also shows the strong demand from Japanese investors for high yield bonds."

Takehiko Masuzawa, the trading manager at Phillip Securities Japan, said, "Berkshire's issuance of yen bonds this year is the largest in a year since they started selling yen bonds, indicating their expectations for a rise in the Japanese stock market."

Mitsushige Akino, the president of Ichiyoshi Asset Management, said the market is now focused on which stocks Buffett might buy, and if there are stocks that meet his criteria.

Some investors also believe that high dividend value stocks, such as banks and insurance companies, are most likely targets.