Gibbs: Japan not at risk of default

Schroders Japan Alpha Plus manager says region will not be hit with crisis of confidence despite year's events.

Schroders’ Nathan Gibbs said fiscal default is not a risk for Japan despite the economy’s struggle to bounce back from the devastating earthquake that struck six months ago. Last week ratings agency Fitch warned Japan faced its greatest ever threat of a downgrade because of its crippling debt pile – twice the size of its $5trn economy – combined with a political impasse on its plan to stabilise the economy. However, Gibbs, manager of the £62m Japan Alpha Plus fund, said this is highly unlikely, given the strength of Japan’s bond market and ‘safe haven’ status in the face of global t...