Salient to Investors:
Foreign ownership of Japanese government debt rose to a record in 2011, signaling increasing dependence on investors abroad to finance the world’s largest public debt. The crisis in Europe has increased demand for the yen and Japanese bonds as a haven.
Japanese household wealth funds has stagnated over the years as the nation’s population ages and deflation weighs on growth. 55 percent of total financial assets of Japanese households were in cash and deposits, versus 14.5 percent in the U.S.