MNI Brief: China Targets Standards Update To Support Trade-ins

MNI BRIEF: Fitch China Outlook Downgrade Regrettable - MoF

MNI BRIEF: Higher Import Prices To Drive Policy - BOJ's Ueda

MNI: PBOC Injects CNY2 Bln Via OMO Weds; Liquidity Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.0959 Weds; -4.95% Y/Y

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

US MBA: REFIS +10% SA; PURCH INDEX -5% SA THRU APRIL 5 WK

MNI: US MBA: MARKET COMPOSITE +0.1% SA THRU APR 05 WK

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Insurers Reduced Hedging Another Headwind

JPY

Bloomberg published an interesting article on hedging practices of Japanese insurance companies earlier today (see this link ICYMI). All in all, the reduced hedging rate points to further yen headwinds.

  • The article states the hedge ratio has dropped to 43.3% at the end of March, from 45.8% 6 months earlier. The companies surveyed had $330bn of dollar assets at the end of the March period.
  • This is the lowest hedging rate in more than a decade and compares with a 62.8% high back in 2016.
  • The cost of hedging, which has surged this year with the Fed commencing tightening, and broad based USD strength, were cited as factors behind the reduced hedge rate.
  • This trend is expected to persist, either through reduced hedging of existing holdings or buying fresh offshore securities without hedging, which can weigh on JPY, all else equal.
Homepagemarkets-real-timeAT&T Market NewsBank of America Market NewsBulletMarketsForeign Exchange Bullets

To read the full story

Close

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.