Why Taiwan’s foreign investment cap should be lifted

Taiwan’s Formosa bond market is experiencing a sharp reversal of fortunes as recent regulatory and interest rate moves make it a far less attractive proposition for the international issuers that have been attracted to the sector in droves over the past few years. This spells bad news for the country’s life insurance industry, which has been relying on Formosa bonds (domestically listed, foreign-currency-denominated instruments) to meet its portfolio yield targets ever since they …