70% of 'Individual Government Bond' Buyers Invest in Other Assets; 1 in 4 Also Purchase Corporate Bonds. 'Lack of Desired Issuers' Cited as Primary Reason for Not Investing in Corporate Bonds.

Siiibo Securities, operator of the corporate bond platform 'Siiibo,' conducted a survey on regular-income investment habits, targeting 300 individuals aged 20 or older who purchased individual-oriented government bonds within the last year.

The company is developing a corporate bond market where individuals can invest directly in companies via its platform.

Amidst rising interest rates, sales of retail government bonds are growing. However, the Japanese corporate bond market faces challenges due to a limited selection for individuals. This survey aimed to clarify the investment landscape for regular income by analyzing motivations for purchasing government bonds and broader investment trends.

Key Survey Findings: 1) Stability Motivation: Nearly half purchase government bonds for 'principal protection' and 'low risk as issued by the state.' 2) Diversification: Over 70% of government bondholders invest in other assets, expanding into products with higher return potential. 3) Corporate Bond Mix: One in four government bondholders also invest in corporate bonds, with over 70% of them citing a desire to combine the security of government bonds with the yields of corporate bonds. 4) Market Barrier: The lack of product variety is the primary issue, with 30% of non-investors citing 'lack of desired issuers' as their reason for not purchasing corporate bonds.

Conclusion: Retail government bonds are gaining popularity as interest rates rise. While investors seek stability, they also aggressively pursue higher profitability. With 25% of government bondholders already incorporating corporate bonds into their portfolios, expanding the lineup of available corporate issuers could significantly increase market participation.