Companies such as Japan Airlines are choosing bank loans over bonds for longer-term funding needs as investors bracing for an end to the era of ultracheap money drive up yields.

The Tokyo-based carrier took out yen loans in recent weeks, while brewer Suntory Holdings decided to partially refinance a subordinated bond with loans. These are stark examples of the tradeoff firms need to take into consideration amid speculation a new Bank of Japan governor will eventually dial back ultraeasy monetary policy.

Anecdotal evidence, including from interviews conducted by Bloomberg News, suggests Japanese loan rates are now more favorable than the cost of selling long-tenor bonds for capital investment and refinancing needs, which typically plummet in value if interest rates rise.