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Economy

Big fish in small pond: Giant Japan pension fund wades into junk bonds

GPIF's entry will boost a domestic market that has few buyers and even fewer issuers

Japan's Government Pension Investment Fund has some $1.5 trillion in assets under management.

TOKYO -- Japan's Government Pension Investment Fund, one of the world's biggest institutional investors, moves into high-yield bond trading in April, signaling a turning point for a segment of the domestic debt market that has struggled to grow for lack of buyers.

Revised portfolio rules allow the GPIF, which has about 160 trillion yen ($1.5 trillion) of managed assets, to invest in Japanese bonds with BB or lower ratings.

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