Yen Drop Seen as Insurers Look Abroad for Yields: Japan Credit
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The world’s lowest-yielding bonds and a weakening currency are encouraging Japanese insurers to look abroad, adding to the exodus of funds from the nation.
Nippon Life Insurance Co., Meiji Yasuda Life Insurance Co. and Sumitomo Life Insurance Co. announced plans last week to boost allocations in foreign debt without protection against currency moves this fiscal year. The yield spread on 10-year U.S. Treasuries over Japanese notes is almost double what it was a year ago when Bank of Japan Governor Haruhiko Kuroda embarked on unprecedented monetary easing that set off the biggest annual slide in the yen in more than three decades.