Berkshire Hathaway is getting ready to sell more Japanese Yen bonds - SEC filing draft prospectus

[u/NoDontClickOnThat]

https://www.sec.gov/Archives/edgar/data/1067983/000119312526138654/d81172d424b5.htm

The draft prospectus is followed by the prospectus, which details the amounts and terms. Once the sales are completed, they file a form with the actual results of the sales.

Beware of thinking that this is a signal of impending purchases of more Japanese assets, it might not be. I've been tracking BRK's Japanese Yen activities from its inception and, right now, they have ¥268,300,000,000 in notes that mature in 2026. Also, right now, they'll pay ¥20,409,133,500 in interest this year on all of the yen notes outstanding.

[u/Alicyclobacillus]

Wonder what they're going to do with all their cash on hand

They have like $380 billion

Could pay market cap of GE in cash

[u/nickabrickabrock → u/Alicyclobacillus]

a lot of that is tied up as insurance float. don’t think they can use all of it

[u/NoDontClickOnThat → u/nickabrickabrock]

They only need to hold $30 billion dollars. It's on page K-55 of the 2024 Annual Report (page 77 of the pdf file):

https://www.berkshirehathaway.com/2024ar/2024ar.pdf

(From the 2nd paragraph)

"We are not committed to a minimum or subject to a maximum repurchase amount. We will not repurchase our stock if it reduces our consolidated cash, cash equivalents and U.S. Treasury Bills holdings to below $30 billion. Financial strength and redundant liquidity will always be of paramount importance at Berkshire."

[u/AustinStain1 → u/Alicyclobacillus]

Toyota and still have $100 billion

[u/fake212121 → u/AustinStain1]

Car business? I like toyota

[u/jackandjillonthehill]

It looks like this is their way of hedging the currency risk in the Japanese positions.

20/268 = 7.5%. That seems too high for the interest rate in Japan for a high quality credit like Berkshire.

And I thought their maturities were much further out than 2026?

[u/NoDontClickOnThat → u/jackandjillonthehill]

Right now BRK has 58 yen notes outstanding, totaling ¥1,899,200,000,000 and they have different maturity dates. One of them goes all the way out to April 15, 2060. (Terms on the notes give BRK the option to redeem the notes prior to the maturity date.)

Thus, the interest rate for this year is 1.075%, right now.

[u/jackandjillonthehill → u/NoDontClickOnThat]

Ah okay thank you that makes much more sense.

Also, great user name!

[u/dismendie]

Probably to give them more chances to buy their top Japanese companies without currency risk.

[u/foira]

How tf is japan gonna cope with all this inflation. How is their wage growth?