Japanese companies step up issuance of convertible bonds as interest rates continue to climb, using them as a cheaper financing option. Bloomberg reports that sales of convertible bonds in the first half reach the highest level in more than two decades, with firms turning to the instrument amid higher borrowing costs. The Japan Times similarly reports that Japanese companies issue about ¥1 trillion (around $6.2 billion) in convertible bonds during the first half—an amount not seen since 2004. Across both reports, the trend points to renewed market interest in convertible bonds as a way for issuers to balance funding needs with the rising cost of traditional debt. The convertible structure gives investors equity upside while allowing companies to potentially reduce immediate interest expenses compared with straight bonds. Together, the articles describe a shift in corporate financing behavior in Japan, driven by the ongoing move upward in interest rates and reflected in record first-half issuance totals.