Berkshire Taps Mizuho and BofA for Yen Bond as Underwriting Profit Slips 43%
Published on 11/11/2026 at 16:31 | Editorial boerse-global.de
Berkshire Hathaway has enlisted Mizuho Securities and BofA Securities for a possible yen-denominated bond sale, Bloomberg reported on Monday — a move that would mark the conglomerate's first such issuance since April and put its appetite for fresh capital squarely alongside a softer underwriting picture.
The financing question matters less on its own than what Berkshire does with the proceeds. A new funding source could widen the company's room to maneuver, provided the terms make economic sense. But a more favorable read on the stock would also require the operating side to regain its footing, and the bond plans alone offer little on that front.
Insurance Result Becomes the Key Yardstick
Underwriting profit is where the pressure shows most clearly. Berkshire's insurance net gain fell 43% to $1.35 billion in the third quarter of 2026, down from $2.369 billion a year earlier, according to Reinsurance News. That single line was a major drag on group earnings. Premium income in property and casualty reinsurance got a lift from the company's arrangement with Tokio Marine.
At the group level, operating profit came in at $12.705 billion for the quarter, against $13.485 billion in the prior-year period — a decline of roughly 6%, as Reuters calculated. Net profit attributable to Berkshire shareholders dropped to $22.112 billion from $30.796 billion, a 28% slide.
Should investors sell immediately? Or is it worth buying Berkshire Hathaway?
Whether that underwriting weakness eases is the test investors now face. A stabilization would support the case that Berkshire can deploy any additional financing from a position of operating strength. If the softness persists, each new capital decision will have to justify itself more forcefully through its returns.
Buybacks Keep Running
Capital deployment has not slowed. Berkshire repurchased about $9.6 billion of its own stock during the third quarter, bringing the nine-month total to roughly $14.4 billion. Reuters reported that the company bought back a further $2 billion or so in October.
The company also disclosed on November 3 the purchase of 924,281 Sirius XM shares, lifting its reported stake. Such moves mean any assessment of how Berkshire uses capital has to account for concrete equity purchases, not just financing plans.
Shares were down 0.6% on the day at €519.90.
Two Sides Must Line Up
The bull case only gains weight if both halves convince: the raising of capital and its profitable deployment. A favorable scenario would pair a stabilizing underwriting result with a yen bond placed on economically attractive terms — a combination more telling than either development alone.
Berkshire Hathaway at a turning point? This analysis reveals what investors need to know now.
The bearish reading centers on the earnings retreat. With net profit and operating profit both lower, the bar for any further capital decision rises. Should underwriting stay under pressure, new funding could not offset operating weakness by itself; additional money would only persuade if Berkshire earns an adequate return on it. A weak operating contribution combined with unattractive financing terms would be the most difficult mix of all.
The next concrete catalyst is confirmation of the possible issuance and its terms, which would show what price Berkshire pays for extra financial flexibility. A lasting re-rating would then need the operating trend to follow. Financing can open doors; what counts is the return that walks through them.
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