Japan's Taiyo Life to increase foreign bond holdings, eyes euro debt
By Shinichi Saoshiro and Shinji Kitamura
TOKYO, April 19 (Reuters) - Japan's Taiyo Life Insurance
plans to increase foreign bond holdings in the current financial
year through March 2020, a senior executive told Reuters on
The insurer, a unit of T&D Holdings with about 7.25
trillion yen ($64.8 billion) in assets, said it plans to
increase holdings of dollar-denominated debt, known as credit
bonds that offer certain spreads above Treasuries, as well as
The insurer plans to increase its foreign bond holdings by
about 30 billion yen this financial year, Takahiro Honda,
general manager at the investment planning department of Taiyo
Life, told Reuters.
"U.S. Treasuries remain unattractive when considering the
high hedging costs involved. We are thus planning on investing
in credit bonds," Honda said.
"As for euro bonds, the sovereigns don't offer very much
yield, so we will be looking at instruments such as
supranational bonds that are higher yielding."
Low domestic yields due to the Bank of Japan's easy monetary
policy have prompted Japanese life insurers to increasingly seek
better returns abroad.
($1 = 111.9200 yen)
(Editing by Jacqueline Wong)
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