Thursday, February 22, 2018

Tokio Marine to invest more in US corporate debt

Tokio Marine will extend its holdings of foreign corporate debt this year as rising hedging costs make foreign government bond investment unappealing.

In particular, the insurer will increase its long-term US corporate debt, an investment-planning official at the firm told Reuters.

The firm has assets of about ¥9.2 trillion (US$81.01 billion). This year, it intends to invest more than ¥100 billion chiefly in foreign credit products as it searches for higher yields.

Through March 2018, it aims to allot some funds from its asset liability management portfolio, amounting to ¥2 trillion, to be invested in high-yield, long-term foreign credit products.

Shuntaro Take, head of portfolio investment, estimates that by end of March 2017, the firm has invested ¥130 billion already.

Aside from the US Treasury bonds, the insurer will also invest in European corporate bonds.


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