Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Japanese life insurance firms are planning to boost holdings of both longer-dated domestic bonds and unhedged foreign bonds, two industry leading firms, Dai-Ichi Life and Sumitomo Life, said Thursday. Dai-Ichi, Japan's second biggest lifer by assets, will increase its unhedged holdings of foreign bonds -- mainly corporate and agency -- if it doesn't see increased signs of a sharp yen rise, according to Akifumi Kai, general manager of the investment planning department.
Sumitomo life plans to increase longer-end JGB holdings by several hundred billion yen this fiscal year, Toshio Fujimura, general manager of Investment Planning Department at Sumitomo Life, told reporters, while unhedged foreign bond holdings will increase by about JPY100 billion. The plan reflects that the company doesn't expect the yen to appreciate against the U.S. dollar, he said.
Fujimura said that the balance of hedged foreign bonds this fiscal year is expected to fall by about JPY100 billion due to U.S. Treasury redemptions. He said the company was nervous about further unhedged Treasury purchases as yields are 'still low' and 'we expect hedging costs to rise further." He added that U.S. corporate bonds are more attractive assets than Treasuries.
20-year JGB Yield
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.