Berkshire Hathaway CEO Greg Abel stated that high bond yields are not a major challenge for Japanese trading houses in which the company has investments.
This week, the Japanese 10-year bond yield reached a 30-year high, while global bond yields suffered another sell-off.
Abel also detailed how Berkshire was able to obtain a more than 10% stake in each of the five major trading firms in Japan, when it previously promised not to cross the double-digit level.
"Not a single one of the trading companies raised it as a fundamental challenge right now," he said.
"They're still relatively modest when you think about it," Abel added.
Berkshire has a greater than 10% stake in five of Japan's largest trading houses — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo.
Abel also mentioned that he expects Berkshire to still raise debt as appropriate in yen, despite the high yields.
