The BOJ accidentally made $440 billion in stocks
EWJ•The Bank of Japan’s equity ETF portfolio has risen from a book value of about 37 trillion yen to a market value of around 106 trillion yen, implying unrealized gains of approximately 69 trillion yen, or $440 billion. The BOJ said it would accelerate sales of the ETFs.
1. Large unrealized gains
The Bank of Japan’s equity ETF portfolio has a market value of around 106 trillion yen, compared with a book value of roughly 37 trillion yen. The difference implies unrealized gains of approximately 69 trillion yen, or $440 billion.
2. ETF sales to accelerate
The BOJ announced it would accelerate sales of ETFs it bought from 2010 to 2024. Mizuho fixed income strategist Masayuki Nakajima said annual disposal gains under the new arrangements would be equivalent to roughly $10 billion, or 0.25% of Japan’s GDP.
