Japanese life insurers flock back to JGBs for their relatively higher yield
High hedging costs and a low yen have led Japanese life insurers to focus on domestic government bonds, although declining yields might also prompt them to seek out alternatives.
Japanese life insurers plan to buy more domestic fixed income, with a focus on the 30-year — so-called super-long — Japanese government bonds (JGBs).
Nippon Life, Japan Post Insurance, and Sumitomo Life are among insurers that have detailed their investment plans for the rest of the fiscal year (ending April) at briefings last month, specifically addressing their super-long JGB stance.
"There is now an attractiveness to Japanese government bonds, [while] the attractiveness of he…
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