Cathay Life eyes US bonds on rising yield, falling hedging cost

Taiwan's Cathay Life is finding US bonds increasingly attractive because yields are rising and hedging costs are falling and sees the asset class as important to help reduce duration mismatch risk under the upcoming domestic solvency regime. The life insurer, which had T$6.94 trillion ($244.3 billion) of assets at the end of 2020, posted a drop in international bond exposure when it announced its results on Monday (March 22). Overseas bonds accounted for 58% of its portfolio as of…