Brand: Pierdant
The term "pierdant T-1200" refers to yen-denominated time deposits with a maturity of over 12 months. In the context of international finance, this type of financial instrument is considered to be "pierdant" because it typically offers lower interest rates than shorter-term deposits due to the higher perceived default risk associated with longer-term lending. This makes it less attractive to foreign investors seeking higher returns on their capital, which can lead to a net outflow of funds from the Japanese economy. The lower demand for pierdant T-1200s also puts pressure on the Japanese government to maintain the country's high fiscal deficit and debt-to-GDP ratio, as it becomes more difficult to finance its long-term borrowing needs.