Partial Revisions to Eligible Collateral Prices
Overview
Based on the results of its regular review, the Bank of Japan will partially revise “Eligible Collateral Prices” and the “Market Price Ratios for Japanese Government Bond Conditional Transactions,” effective November 27, 2026. Appendix 1 revises prices by eligible collateral category and other prices. Appendix 2 revises price ratios for Japanese government bond conditional transactions and repurchase sales conducted for supplementary supply.
Key points
- The Bank of Japan will partially revise the rules listed in Appendix 1 and Appendix 2, respectively.
- The revisions will take effect on November 27, 2026.
- The revisions are based on the results of a regular review conducted in light of financial market conditions and other factors.
Overview
The Bank of Japan reviews eligible collateral prices and related matters to ensure the soundness of its assets and the efficient use of collateral by market participants.
The documents being revised are “Eligible Collateral Prices” (decided January 31, 2017) and “Market Price Ratios for Japanese Government Bond Conditional Transactions” (decided January 31, 2017).
Details
Appendix 1 revises items 1, 3, 4, and 5 of “Eligible Collateral Prices.” The scope covers collateral under the Basic Guidelines; special rules for corporate and local government debt and similar liabilities; special rules for USD-denominated loans to corporations; and collateral under the guidelines for handling eligible housing loan trust beneficiary rights.
Appendix 1 revises the collateral prices shown in tables and other materials in each applicable set of rules. It states that the collateral price for housing loan trust beneficiary rights is calculated by multiplying the sum of the equivalent outstanding principal amount and equivalent repayment principal amount of the housing loan claims held as trust property by “5951%.”
Appendix 2 revises the market price ratios for purchases and sales under the Basic Guidelines for Japanese Government Bond Conditional Transactions, and the market sale price ratio under the Basic Guidelines for Repurchase Sales of Japanese Government Bonds for Supplementary Supply. It sets out ratios by remaining maturity for interest-bearing government bonds and Treasury Discount Bills.