Japan’s Insurers With $2.6 Trillion to Tip-Toe Back Into JGBs
- Firms awaiting higher super-long yields as BOJ outlook eyed
- Insurers may buy slightly more unhedged foreign bonds
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Japan’s life insurers are likely to gradually buy more domestic bonds in the fiscal second half, while awaiting clarity on the central bank’s interest-rate-hike timeline, strategists say.
With combined invested assets of about ¥388 trillion ($2.6 trillion) according to Life Insurance Association of Japan data, the firms will lay out their investment plans starting this week for the six months ending March 2025. The insurers’ huge size makes them one of the most powerful investment entities in Japan, and their plans are closely tracked because of their potential impact on the global debt markets.