Taiwan’s regulators stepped up what’s become a years-long campaign to limit dangers in the economy’s giant institutional investors, who’ve been driven to riskier assets by low global bond yields.
The Financial Supervisory Commission said in a statement Tuesday that it is raising the risk-capital charge for insurance firms buying exchange-traded funds that track foreign bonds but are denominated in local currency. Taiwanese investors have piled into these securities in their search for yield, driving some $26.6 billion in sales over January through October, according to data compiled by Bloomberg.
