Market, Credit and Liquidity Risks in SB Northstar’s Management of Listed Equities and Derivatives
First written in FY2021-Q2. 5 of 12 entries say "Mitigated", first in FY2022-Q2. Latest entry: 2026-08-06.
SoftBank Group Corp. moved to the "Worse" side of this theme in 2025.
1 other company's latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Investment gains attributable to the asset management subsidiary for the interim accounting period, including interest received from bond investments, were ¥229.7 billion (cumulative investment losses since the start of operations: ¥735.8 billion), and investment holdings at the end of the interim period were ¥1.3163 trillion, of which ¥816.4 billion was corporate bonds.」
Although SB Northstar’s cumulative losses decreased, investment holdings increased from ¥594.1 billion at the end of the previous fiscal year to ¥1.3163 trillion, resulting in a renewed increase in exposure to market, credit and liquidity risks. - FY2025-H1MitigatedAnnual report
「Investment holdings at the end of the interim period were ¥594.1 billion, of which ¥519.2 billion was corporate bonds.」
SB Northstar’s investment holdings decreased from the end of the previous quarter, reducing its exposure to market, credit and liquidity risks associated with managing listed equities and derivatives. - FY2024-Q3WorsenedAnnual report
「Investment losses attributable to the asset management subsidiary for the nine-month period were ¥49.3 billion (cumulative investment losses since the start of operations: ¥941.7 billion) (Note), and investment holdings at the end of the third quarter were ¥265.5 billion.」
SB Northstar’s investment holdings increased from ¥85.8 billion at the end of the previous quarter to ¥265.5 billion. Investment losses of ¥49.3 billion for the nine-month period and cumulative losses of ¥941.7 billion since the start of operations were disclosed, resulting in a renewed increase in exposure to market, credit and liquidity risks. - FY2024-Q2WorsenedAnnual report
「Investment losses attributable to the asset management subsidiary for the six-month period were ¥50.3 billion (cumulative investment losses since the start of operations: ¥942.7 billion) (Note), and holdings of equities and other assets at the end of the second quarter were ¥117.7 billion.」
SB Northstar’s assets under management increased from the end of the previous quarter, and investment losses of ¥50.3 billion for the first half and cumulative investment losses of ¥942.7 billion since the start of operations were disclosed, resulting in a renewed increase in exposure to market, credit and liquidity risks. - FY2024-Q1MitigatedAnnual report
「Holdings of equities and other assets at the end of the first quarter were ¥85.8 billion.」
SB Northstar’s assets under management decreased, further reducing its exposure to market, credit and liquidity risks. - FY2023-Q1MitigatedAnnual report
「The business is being scaled back to redirect funds to investments in SVF2, currently the main area of focus, and its equity holdings decreased from ¥315.9 billion at the end of the previous fiscal year to ¥207.0 billion at the end of the first quarter.」
SB Northstar’s market, credit and liquidity risk exposure declined as the scale of operations was reduced and held equities were sold. - FY2022-Q3MitigatedAnnual report
「SB Northstar had borrowed against Alibaba shares it held. During the three months ended 30 September 2021, it repaid the entire US$6 billion in borrowings ahead of maturity, releasing the pledged collateral consisting of Alibaba shares.」
With respect to liquidity risks associated with SB Northstar’s collateral and borrowings, the entire US$6 billion borrowing secured by Alibaba shares was repaid and the collateral was released. Holdings of cash equities and other assets were also substantially reduced. - FY2022-Q2MitigatedAnnual report
「SB Northstar had borrowed against Alibaba shares it held. During the three months ended 30 September 2021, it repaid the entire US$6 billion in borrowings ahead of maturity, releasing the pledged collateral consisting of Alibaba shares.」
With respect to SB Northstar’s borrowing, collateral and liquidity risks, the entire US$6 billion borrowing secured by Alibaba shares was repaid ahead of maturity, and the collateral was released. - FY2021-Q3MaterialisedAnnual report
「Derivative-related losses of ¥577,602 million were recorded on investments by the asset management subsidiary. This was mainly due to losses at SB Northstar on call options related to listed equities and short positions in stock index futures.」
SB Northstar’s market, credit and liquidity risks materialised as derivative-related losses of ¥577.602 billion and realised losses on investments in listed equities. Controls including daily monitoring, investment committee approval and leverage limits were also disclosed. - FY2021-Q2First statedAnnual report
「As its asset management subsidiary SB Northstar began acquiring and selling listed equities, as well as trading derivatives related to listed equities and engaging in margin trading, for the purpose of diversifying its assets and managing surplus funds, the Company became exposed to various financial risks, including market, credit and liquidity risks.」
New disclosures covered market price fluctuations arising from the launch of SB Northstar’s operations, credit concentration with brokers, and liquidity risks associated with collateral and borrowings. In the first half, investment losses of ¥95.0 billion on listed equities and other assets and related derivative losses of ¥292.3 billion were recorded, demonstrating the impact of these risks in the results.