Distressed Assets Pile Up at Life Insurers, and More Are Coming
- Companies are holding most bonds in or near default since 2011
- As regulators loosen rules, insurers likely to buy more junk
This article is for subscribers only.
North American life insurers have accidentally doubled their distressed-debt holdings in just six months. In the future, they are poised to build on that mound by design.
Companies including Prudential Financial Inc. and MetLife Inc. held $1.32 billion of bonds that were in default, or close to it, at the end of the second quarter, their highest level since the middle of 2011, according to Bloomberg Intelligence data.