Insurers Add Risk, Sacrifice Liquidity in Hunt for Yield
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U.S. life insurers, a group led by MetLife Inc., are turning to riskier and less-liquid assets as they work to increase investment income amid near record-low interest rates, Moody’s Investors Service said.
Portfolio managers are adding high-yield bonds, commercial mortgages and bank loans to boost income, while attempting to limit risk if rates do rise, according to the ratings firm.