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Derivatives Losses Spike Japanese Bankruptcies
A growing number of small and midsized Japanese firms have filed for bankruptcy as a result of losses from derivatives bought to hedge currency exposure, reports Fincad.
A growing number of small and midsized Japanese firms have filed for bankruptcy as a result of losses from derivatives bought to hedge currency exposure. The losses occurred as the yen rose dramatically13%--against the U.S. dollar last year. Some of Japans largest financial institutions have heeded the call by the Financial Services Agency to go easy on the counterparties.