Zurich Insurance Warms to Junk Credit Amid Low Yields
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Zurich Insurance Group AG, Switzerland’s biggest insurer, became the latest firm to buy junk bonds and loans after the European Central Bank’s quantitative easing pushed yields on investment grade debt into negative territory.
“We are in most sectors of the credit markets already, in corporate, financials, municipals and asset-backed securities,” Chief Investment Officer Cecilia Reyes said in an interview in Zurich. “We are not quite there yet in below investment grade - - that’s the area we will move in to now to get a holistic exposure to the credit market.”