SOFR ACADEMY WELCOMES PUBLICATION OF JAPANESE AXI AND FXI FEASIBILITY STUDY

KUALA LUMPUR, Sept 13 (Bernama) -- SOFR Academy has welcomed the publication of the paper “Exploring feasibility of JPAXI and JPFXI” by Professor Tatsuyoshi Okimoto of Keio University and Professor Sumiko Takaoka of Seikei University, Tokyo, Japan.

“A Japanese Yen denominated FXI will be helpful for Japanese financial institutions and can complement the development of new markets referencing near risk free rates such as TONA and TORF. I am very grateful to Professors Okimoto and Takaoka,” said SOFR Academy Chief Executive Officer, Marcus Burnett.

The paper is a feasibility study of a Japanese version of Across-the-Curve Credit Spread Index (JPAXI) and the Financial Condition Credit Spread Index (JPFXI) accounting for specific features of the Japanese corporate bond market.

According to a statement, the authors found that JPFXI presents a stable and reliable benchmark credit spread index for Japan.

“JPFXI would be a highly valuable reference rate for the Japanese corporate bond market, as it reflects the actual funding costs more efficiently and accurately based on the transaction data,” said Professor Okimoto who is co-author of the Japanese AXI and FXI feasibility.

Meanwhile, Professor Takaoka who is also the co-author of the Japanese AXI and FXI feasibility study said JPFXI appears to be a reliable benchmark index for Japan, thus becoming a major transaction-based credit spread benchmark for pricing various financial instruments such as derivatives and securities.

In 2022, Invesco Indexing LLC, an independent index provider owned by global asset manager Invesco Ltd partnered with SOFR Academy to launch the first-of-their-kind US-dollar Across-the-Curve Credit Spread Indices (AXI) and US-dollar Financial Conditions Credit Spread Indices (FXI).

An economic education and market information provider, SOFR Academy is also a member of the Asia Pacific Loan Market Association (APLMA), American Economic Association (AEA), and the Loan Syndications and Trading Association (LSTA), among others.

-- BERNAMA