Tokyo Stocks Soar
To All-Time HighStocks soared to a record high on record volume Friday, as several Japanese securities houses launched new investment trusts.
The Nikkei index of 225 stocks rose 467.87 points to 22,026.66, closing above the 22,000 level for the first time. Volume rose to a record 2.6 billion shares from 1.4 billion on Thursday.
Analysts said heavy intervention by the Bank of Japan to support the
dollar helped to lessen fears of profit declines of export-oriented companies.
Bank May Reclassify
Some Loans to Brazil
WASHINGTON - Marine Midland Banks said it may have to reclassify some of its loans to Brazil as non-performing.
In a filing with the Securities and Exchange Commission, Marine Midland said, "Continued suspension of interest payments on the medium- and long-term debt could result in such loans being classified as nonperforming and placed on non-accrual."
The bank said it believes it is premature to decide whether to reclassify the loans at this time. It added that if negotiations between Brazil and its creditor banks aren't completed before the end of the third quarter, "the company estimates, based on existing interest rates, that net income would be reduced by approximately $22 million" for 1987.
Sallie Mae to Borrow
New Zealand Dollars
WASHINGTON - The Student Loan Marketing Association, or Sallie Mae, announced a two-year, fixed-rate offering of 100 million New Zealand dollars (US$56 million).
The notes will be sold at a coupon rate of 18.375 percent, with interest rates and principal at maturity poid in New Zealand dollars.
Sallie Mae said it would simultaneously enter into a separate currency and interest rate agreement that will convert its payment obligations to floating- rate U.S. dollars at an attractive cost of funds.
Lend to Italian Bank
OSAKA, Japan - Sumitomo Life Insurance Co. and Industrial Bank of Japan Friday signed an agreement in London on a 4.6 billion yen (US$31 million) joint financing for Istituto Mobiliare Italiano, Italy's leading bank specializing in medium- and long-term lending to industry and public utilities.
The yen-denominated loan will be repayable in a lump sum in six years and nine months and will carry a fixed interest of 5.8 percent.
Credit Risk Disclosure
Proposals to be Aired
STAMFORD, Conn. - The Financial Accounting Standards Board will hold an open meeting Wednesday to consider staff recommendations concerning how to improve disclosures about credit risk, including the levels of concentration of risk in particular counterparties, industries, and locations for which disclosure should be required.
The accounting firm of Touche Ross & Co. said in its latest Banking Briefs newsletter that the FASB has conditionally approved staff recommendations to expand credit risk disclosures to include the maximum credit risk a company is subject to for off-balance-sheet items.
Bank Investor Group
Elects New President
NEW YORK - James A. Kirkpatrick, senior vice president of Sovran Financial Corp., Norfolk, Va., was elected president of the Bank Investor Relations Association at the organization's annual meeting.