Japan’s Biggest Insurer Moves Deeper into Foreign Credit Despite Higher Domestic Yields

Japan’s biggest insurer is planning to invest more in foreign credit markets, looking to diversify its portfolio even as key domestic yields hover at decade highs.

Nippon Life Insurance, the largest insurer in Japan by asset size, has started buying foreign floating-rate, corporate debt-backed securities—known as collateralized loan obligations—and intends to invest more in overseas corporate bonds this fiscal year, said Ikumi Hiramatsu, who manages asset allocation at the company. It bought billions of dollars of foreign corporate bonds the previous fiscal year.

Source: WSJ