Market Risk from Interest Rate, Foreign Exchange and Share Price Fluctuations
First written in FY2017. 9 of 26 entries say "Worsened", first in FY2020-Q3. Latest entry: FY2026.
Japan Securities Finance moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2024: 3 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「As of 31 March 2026, the consolidated year-end date, the Company's market risk exposure, an estimate of potential losses, was ¥6,607 million, compared with ¥7,874 million as of 31 March 2025.」
Market risk exposure measured using VaR decreased from ¥7,874 million in the previous fiscal year to ¥6,607 million. Quantitative exposure to market risk decreased. - FY2026-H1MitigatedAnnual report
「FX forward contracts 138,214 582 582 FX forward contracts 71,219 579 579」
The notional amounts and other amounts of FX forward contracts decreased from ¥138,214 million at the end of the previous fiscal year to ¥71,219 million, while the fair value was a gain of ¥579 million. Quantitative exposure related to FX forward contracts decreased. - FY2025WorsenedAnnual report
「As of 31 March 2025, the consolidated year-end date, the Company's market risk exposure, an estimate of potential losses, was ¥7,874 million, compared with ¥7,216 million as of 31 March 2024.」
Market risk exposure increased from ¥7,216 million in the previous fiscal year to ¥7,874 million, increasing quantitative exposure to market fluctuations. - FY2025-H1WorsenedAnnual report
「FX forward contracts 113,283 △2,305 △2,305」
The notional amounts and other amounts of FX forward contracts increased from ¥61,971 million at the end of the previous consolidated fiscal year to ¥113,283 million, while the fair value moved from a gain of ¥1,051 million to a loss of ¥2,305 million. The quantitative effects of foreign exchange and market volatility risk worsened. - FY2024WorsenedAnnual report
「As of 31 March 2024, the consolidated year-end date, the Company's market risk exposure, an estimate of potential losses, was ¥7,216 million, compared with ¥6,220 million as of 31 March 2023.」
Market risk exposure increased from ¥6,220 million in the previous fiscal year to ¥7,216 million. Quantitative exposure to market risk, measured using VaR and other methods, increased. - FY2024-Q3Widening losses on FX forward contracts alongside improved deferred hedge gains and lossesAnnual report
「Currency FX forward contracts 994 △14 △14 Currency FX forward contracts 6,448 △21 △21」
The fair value loss on FX forward contracts worsened from a loss of ¥14 million at the end of the previous fiscal year to a loss of ¥21 million at the end of the quarter. Meanwhile, deferred hedge gains and losses related to changes in the prices of securities held and other assets improved, with the effects of market risk varying by line item. - FY2024-Q2Widening losses on FX forward contracts alongside improved deferred hedge gains and lossesAnnual report
「Currency FX forward contracts 994 △14 △14 Currency FX forward contracts 12,188 △26 △26」
The fair value loss on FX forward contracts worsened from a loss of ¥14 million at the end of the previous fiscal year to a loss of ¥26 million at the end of the quarter. Meanwhile, deferred hedge gains and losses related to changes in the prices of securities held and other assets improved, with the effects of market risk varying by line item. - FY2024-Q1The simultaneous conversion to valuation gains on foreign exchange forwards and deterioration in hedge gains (losses)Annual report
「Currency Foreign exchange forward transactions 4,572 202 202」
Foreign exchange forward transactions turned from a valuation loss of ¥14 million at the end of the previous fiscal year into a valuation gain of ¥202 million at the end of the current quarter. Meanwhile, deferred hedge gains (losses) deteriorated by ¥4,195 million due to fluctuations in the prices of securities held and other assets, and the impact of market risk emerged differently across items. - FY2023MitigatedAnnual report
「As of 31 March 2023, the consolidated fiscal year-end, the Company's market risk exposure, an estimate of the amount of loss, was ¥6,220 million.」
Market risk exposure was ¥6,220 million, down from ¥7,109 million in the previous fiscal year. Quantitative market risk exposure, measured using VaR and other methods, decreased from the previous fiscal year. - FY2023-Q3WorsenedAnnual report
「Foreign exchange forward transactions 795 △34 △34」
Valuation gains (losses) on foreign exchange forward transactions were negative ¥34 million, turning from a valuation gain of ¥19 million at the end of the previous quarter into a valuation loss. Foreign exchange and market fluctuation risk again emerged as a valuation loss. - FY2023-Q2Valuation losses on foreign exchange forwards turned into valuation gainsAnnual report
「Foreign exchange forward transactions 3,223 △110 △110 Foreign exchange forward transactions 3,636 19 19」
Valuation gains (losses) on foreign exchange forward transactions turned from negative ¥110 million at the end of the previous fiscal year into a valuation gain of ¥19 million at the end of the second quarter of the current fiscal year. Meanwhile, the valuation difference on available-for-sale securities declined, and the impact of market risk emerged differently across items. - FY2023-Q1WorsenedAnnual report
「Foreign exchange forward transactions 8,785 △188 △188」
The contract amount and other figures for foreign exchange forward transactions were ¥8.785 billion, while fair value and valuation gains (losses) were negative ¥188 million, meaning that valuation losses increased from negative ¥110 million at the end of the previous fiscal year. The valuation difference on securities held also declined. - FY2022-Q3WorsenedAnnual report
「Foreign exchange forward transactions 1,680 △1 △1」
Valuation gains (losses) on foreign exchange forward transactions were negative ¥1 million, turning from a valuation gain of ¥147 million at the end of the previous consolidated fiscal year into a valuation loss. In addition, deferred hedge gains (losses) deteriorated due to fluctuations in the prices of securities held and other assets, and the impact of market risk emerged as actual valuation losses and a decline in comprehensive income. - FY2022-Q2Valuation gains on foreign exchange forwards narrowed, while deferred hedge gains (losses) deterioratedAnnual report
「Accumulated other comprehensive income: Although deferred hedge gains (losses) deteriorated by ¥1 billion due to fluctuations in the prices of securities held and other assets, the valuation difference on available-for-sale securities increased by ¥1.6 billion, resulting in an increase of ¥600 million from the end of the previous consolidated fiscal year.」
The deterioration in deferred hedge gains (losses) due to fluctuations in the prices of securities held and other assets actually occurred. Meanwhile, valuation gains on foreign exchange forward transactions narrowed from ¥147 million at the end of the previous fiscal year to ¥4 million. - FY2022-Q1MaterialisedAnnual report
「Foreign exchange forward transactions 1,027 △4 △4」
The contract amount and other figures for foreign exchange forward transactions were ¥1.027 billion, while fair value and valuation gains (losses) were negative ¥4 million. They turned from a valuation gain of ¥147 million at the end of the previous consolidated fiscal year into a valuation loss, and foreign exchange and market fluctuation risk emerged as an actual valuation loss. - FY2021MitigatedAnnual report
「As of 31 March 2021, the consolidated fiscal year-end, the Company's market risk exposure, an estimate of the amount of loss, was ¥7,109 million.」
Market risk exposure was ¥7,109 million, down from ¥17,749 million in the previous fiscal year. Quantitative exposure to market risk decreased from the previous fiscal year. - FY2021-Q3WorsenedAnnual report
「Foreign exchange forward transactions 31,351 △207 △207」
Valuation gains (losses) on foreign exchange forward transactions were negative ¥207 million, turning from a valuation gain of ¥27 million at the end of the previous consolidated fiscal year into a valuation loss. Foreign exchange and market fluctuation risk emerged as an actual valuation loss. - FY2021-Q2MaterialisedAnnual report
「Accumulated other comprehensive income: Although deferred hedge gains (losses) deteriorated due to fluctuations in the prices of securities held and other assets, the valuation difference on available-for-sale securities increased, resulting in an increase of ¥1.3 billion from the end of the previous consolidated fiscal year.」
Although deferred hedge gains (losses) deteriorated due to fluctuations in the prices of securities held and other assets, the increase in the valuation difference on available-for-sale securities offset this, resulting in a ¥1.3 billion year-on-year increase in accumulated other comprehensive income. - FY2021-Q1MaterialisedAnnual report
「Accumulated other comprehensive income: Deferred hedge gains (losses) deteriorated due to fluctuations in the prices of securities held and other assets, while the valuation difference on available-for-sale securities also declined, resulting in a decrease of ¥1 billion from the end of the previous consolidated fiscal year.」
The deterioration in deferred hedge gains (losses) due to fluctuations in the prices of securities held and other assets and the decline in the valuation difference on available-for-sale securities actually occurred, and the impact of market risk emerged in comprehensive income and net assets. - FY2020WorsenedAnnual report
「As of 31 March 2020, the consolidated fiscal year-end, the Company's market risk exposure, an estimate of the amount of loss, was ¥17,749 million.」
Market risk exposure was ¥17,749 million, up from ¥9,084 million disclosed for the fiscal year ended March 2018. Quantitative exposure to valuation and realized loss risk during sharp market fluctuations has increased. - FY2020-Q3WorsenedAnnual report
「Foreign exchange forward transactions 65,104 △90 △90」
The contract amount and other figures for foreign exchange forward transactions were ¥65.104 billion, while fair value and valuation gains (losses) were negative ¥90 million. Valuation losses expanded from negative ¥66 million at the end of the previous quarter, and foreign exchange and market fluctuation risk emerged as actual valuation losses. - FY2020-Q2MaterialisedAnnual report
「Foreign exchange forward transactions 35,591 △66 △66」
The contract amount and other figures for foreign exchange forward transactions were ¥35.591 billion, while fair value and valuation gains (losses) were negative ¥66 million. Foreign exchange and market fluctuation risk emerged as actual valuation losses. - FY2020-Q1MaterialisedAnnual report
「Foreign exchange forward transactions 16,431 △279 △279」
The contract amount and other figures for foreign exchange forward transactions were ¥16.431 billion, while fair value and valuation gains (losses) were negative ¥279 million. Deferred hedge gains (losses) also declined due to fluctuations in the prices of securities held and other assets, and foreign exchange and market fluctuation risk emerged as actual valuation losses. - FY2019-Q3MaterialisedAnnual report
「Foreign exchange forward transactions 102,985 △1,524 △1,524」
The contract amount and other figures for foreign exchange forward transactions were ¥102.985 billion, while fair value and valuation gains (losses) were negative ¥1.524 billion. Deferred hedge gains (losses) also deteriorated due to fluctuations in the prices of securities held and other assets, and foreign exchange and market fluctuation risk emerged as actual valuation losses. - FY2018MitigatedAnnual report
「As of 31 March 2018, the consolidated fiscal year-end, the Company's market risk exposure, an estimate of the amount of loss, was ¥9,084 million.」
Market risk exposure was disclosed at ¥9,084 million, down from ¥14,181 million disclosed for the previous fiscal year. Management using VaR, stress testing, and backtesting continues. - FY2017First statedAnnual report
「If market prices fall sharply due to fluctuations in interest rates, foreign exchange rates, stock prices and other factors, valuation losses and realized losses may exceed expectations.」
The Company recognizes market risk relating to bonds, foreign-currency-denominated securities, policy-oriented investment shares, derivatives and other instruments, and disclosed market risk of ¥14,181 million as of the end of March 2017.