Ehime Prefecture is best known for hot springs, citrus fruit and cycling. It is also home to some savvy bond traders.
Iyogin Holdings, a regional bank based in the prefectural capital of Matsuyama, has delivered record net income for two years in a row, driven by returns on its investments in Treasurys and other foreign bonds.
That makes the bank the only one of the country’s 73 regional lenders to book gains from bonds over that time period, according to SMBC Nikko Securities. It also stands in contrast to the country’s premier agricultural bank, Norinchukin, which expects a loss of at least ¥500 billion ($3.2 billion) this fiscal year because of losses on foreign notes.
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