What is ‘Gen-Saki’
A secondary market in Japan, also known as a repo market for its similarity to repurchase agreements. It is a medium for government bonds, in the Japanese market only, to be reissued and resold at the new rate. Gen-Saki is available to both corporations and financial institutions.
Explaining ‘Gen-Saki’
When setting the Gen-Saki rate, the yen London interbank offered rate is heavily considered as it accurately reflects the deposit market rate.
Further Reading
- Financial Barriers in the Pacific Basin: 1982-1992 – www.jstor.org [PDF]
- Monetary policy in the wake of financial liberalisation – www.oecd-ilibrary.org [PDF]
- The Japanese financial system: Past, present, and future – www.tandfonline.com [PDF]
- Competition and the transition of finance in Japan and the United States – www.sciencedirect.com [PDF]
