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Nippon Life to Persist with Foreign Bonds, Despite Higher Hedging Costs

JAPAN
  • Following yesterday's update from Japan Post, Nippon Life disclose their plans to boost domestic bonds holdings in the second half of this fiscal year, with purchases to include 30-year JGBs and yen-denominated foreign corporate bonds.
  • Nippon Life's intentions are to maintain the current balance of hedged-foreign bond holdings despite high hedging costs but will invest money in attractive corporate bonds.
  • Yesterday's Japan Post update disclosed their intention to shift more into JPY bond holdings, reducing their foreign debt holdings, citing elevated FX-hedging costs and their view of a firmer JPY in the second half of the fiscal year.

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