Market credit risk arising from changes in credit spreads
First written in FY2021. 2 of 11 entries say "Worsened", first in FY2025. Latest entry: FY2026.
Tomato Bank moved to the "Worse" side of this theme in 2025, 5 years after the typical company in this theme (2020).
The whole theme swung hardest in 2019: 35 of 110 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The significant unobservable input used to measure the fair value of privately placed bonds is the discount rate. The discount rate is based on an appropriate benchmark, such as swap rates, plus a credit spread for each credit risk category used in credit management. A significant increase (decrease) in this input would result in a significant decrease (increase) in fair value.」
The discount rate for privately placed bonds was 0.0%–17.1%, with a weighted average of 1.80%, and both the upper end and the weighted average increased from 0.0%–9.02% and 1.21%, respectively, in the previous fiscal year. The level of the input has increased in the quantitative disclosure of the risk of valuation losses from fluctuations in credit spreads. - FY2026-H1First-half update to the discount rate for credit spreadsAnnual report
「The significant unobservable input used to measure the fair value of privately placed bonds is the discount rate. The discount rate is based on an appropriate benchmark, such as swap rates, plus a credit spread for each credit risk category used in credit management. A significant increase (decrease) in this input would result in a significant decrease (increase) in fair value.」
The discount rate for privately placed bonds was 0.0%–8.98%, with a weighted average of 1.17%, and both the upper end of the range and the weighted average declined from 0.0%–9.02% and 1.21%, respectively, at the end of the previous fiscal year. - FY2025WorsenedAnnual report
「The significant unobservable input used to measure the fair value of privately placed bonds is the discount rate. The discount rate is based on an appropriate benchmark, such as swap rates, plus a credit spread for each credit risk category used in credit management. A significant increase (decrease) in this input would result in a significant decrease (increase) in fair value.」
The discount rate for privately placed bonds was 0.0%–9.02%, with a weighted average of 1.21%, and both the upper end and the weighted average increased from 0.0%–8.4% and 0.7%, respectively, in the previous fiscal year. - FY2025-H1First-half update to the discount rate for credit spreadsAnnual report
「The significant unobservable input used to measure the fair value of privately placed bonds is the discount rate. The discount rate is based on an appropriate benchmark, such as swap rates, plus a credit spread for each credit risk category used in credit management. A significant increase (decrease) in this input would result in a significant decrease (increase) in fair value.」
The discount rate for privately placed bonds was 0.0%–8.5%, with a weighted average of 0.9%, and the upper end of the range and the weighted average increased from 0.0%–8.4% and 0.7%, respectively, at the end of March 2024. - FY2024Full-year update to the discount rate for credit spreadsAnnual report
「The significant unobservable input used to measure the fair value of privately placed bonds is the discount rate. The discount rate is based on an appropriate benchmark, such as swap rates, plus a credit spread for each credit risk category used in credit management. A significant increase (decrease) in this input would result in a significant decrease (increase) in fair value.」
The discount rate for privately placed bonds was 0.0%–8.4%, with a weighted average of 0.7%, and the upper end of the range and the weighted average increased from 0.0%–7.9% and 0.5%, respectively, in the previous fiscal year. - FY2024-Q2First-half update to the discount rate for credit spreadsAnnual report
「Privately placed bonds Present value technique Discount rate 0.0%–7.9% 0.6%」
The discount rate for privately placed bonds was 0.0%–7.9%, with a weighted average of 0.6%. The range was unchanged from the end of the previous fiscal year, while the weighted average increased from 0.5%, updating the quantitative disclosure of the risk of valuation losses from fluctuations in credit spreads. - FY2023Update to the discount rate range for credit spreadsAnnual report
「The significant unobservable input used to measure the fair value of privately placed bonds is the discount rate. The discount rate is based on an appropriate benchmark, such as swap rates, plus a credit spread for each credit risk category used in credit management. A significant increase (decrease) in this input would result in a significant decrease (increase) in fair value.」
The discount rate for privately placed bonds was 0.0%–7.9%, with a weighted average of 0.5%, and both the upper end of the range and the weighted average declined from 0.0%–9.7% in the previous fiscal year. - FY2023-Q2Update to the discount rate range for credit spreadsAnnual report
「The significant unobservable input used to measure the fair value of privately placed bonds is the discount rate. The discount rate is based on an appropriate benchmark, such as swap rates, plus a credit spread for each credit risk category used in credit management. A significant increase (decrease) in this input would result in a significant decrease (increase) in fair value.」
The discount rate for privately placed bonds was 0.0%–7.4%, with a weighted average of 0.6%, and the upper end of the range declined from 0.0%–9.7% in the previous consolidated fiscal year. The quantitative disclosure of the risk of valuation losses from fluctuations in credit spreads has been updated. quantified is determined to be true, and materialized false. - FY2022Update to the discount rate range for credit spreadsAnnual report
「The significant unobservable input used to measure the fair value of privately placed bonds is the discount rate. The discount rate is based on an appropriate benchmark, such as swap rates, plus a credit spread for each credit risk category used in credit management. A significant increase (decrease) in this input would result in a significant decrease (increase) in fair value.」
Regarding the risk of valuation losses from fluctuations in credit spreads, quantitatively disclosed the discount rate for privately placed bonds as 0.0%–9.7%, with a weighted average of 0.6%, showing the relationship between higher discount rates and lower fair values. - FY2022-Q2Quantitative disclosure of fair value measurement inputs, including credit spreadsAnnual report
「The significant unobservable input used to measure the fair value of privately placed bonds is the discount rate. The discount rate is based on an appropriate benchmark, such as swap rates, plus a credit spread for each credit risk category used in credit management. A significant increase (decrease) in this input would result in a significant decrease (increase) in fair value.」
Regarding the risk of valuation losses from fluctuations in credit spreads, disclosed the discount rate for privately placed bonds as 0.0%–7.2%, with a weighted average of 0.3%, clarifying the valuation structure in which higher credit spreads lead to lower fair values. - FY2021First statedAnnual report
「We invest in bonds, derivatives and other products that contain credit risk. If credit spreads fluctuate in the future due to changes in domestic or overseas economic conditions or deterioration in the business environment of investees, valuation losses may arise and adversely affect our results of operations and financial position.」
For the first time, identifies the risk of valuation losses from fluctuations in the credit spreads of bonds and derivatives as an independent market-related risk.