Table: Japan life insurers to buy super-long JGBs, shy away from currency hedges
27/10/2022 06:19
By Kevin Buckland and Tomo Uetake
TOKYO, Oct 27 (Reuters) - Japan's biggest life insurers say they plan to increase
holdings of the longest-maturity Japanese government bonds, drawn by yields that rose to
multi-year highs this week.
Many are shifting to those JGBs from currency-hedged foreign debt, amid soaring hedging
costs, they said in news conferences and interviews with Reuters over the past nine days.
The following is a summary of their investment plans for the six months through the fiscal
year ending March 2023.
JAPAN BONDS
Nippon Life to increase JGB holdings, mainly in superlong sector
Meiji Yasuda to increase JGB holdings
Dai-ichi to increase JGB holdings, mainly in superlong sector
Sumitomo to increase JGB holdings by 100 billion yen
Taiyo to increase JGB holdings
Taiju to keep JGB holdings steady, but increasing superlong sector
Fukoku to increase superlong JGB holdings by 60 billion yen
Asahi to increase JGB holdings by 10 billion yen; 30y JGB yields attractive above 1.6%
Daido to increase JGB holdings, mainly in superlong sector
Japan Post to invest in superlong JGBs
FOREIGN BONDS
Nippon Life to reduce hedged investments; unhedged bonds steady
Meiji Yasuda to reduce hedged sovereign bonds, increase credit; unhedged bonds steady
Dai-ichi plans depend on rate, currency moves
Sumitomo to reduce hedged investments; unhedged bonds steady
Taiyo to reduce hedged investments
Taiju to reduce hedged investments, increase unhedged bonds
Fukoku to convert some hedged bonds to unhedged
Asahi to reduce foreign bond holdings
Daido to reduce foreign bond holdings
Japan Post to reduce hedged bonds, shift some to yen bonds; unhedged investments steady
DOMESTIC STOCKS, ALTERNATIVE INVESTMENTS
Nippon Life to keep Japan stock holdings steady, increase foreign equities
Meiji Yasuda to reduce Japan stock holdings, increase foreign equities
Dai-ichi to reduce Japan stock holdings, increase alternative investments and real estate
Sumitomo to increase Japan stock holdings by about 100 billion yen, increase foreign
equities by several hundred billion yen
Taiyo to keep holdings steady
Taiju to keep Japan stock holdings steady, decrease real estate
Fukoku has paused taking on risk assets
Asahi to keep Japan stock holdings steady
Daido to hold steady or slightly reduce Japan stock holdings
Japan Post to keep Japan and foreign equity holdings steady
(Writing by Kevin Buckland; Reporting by Tomo Uetake and Tokyo markets team; Editing by Rashmi
Aich)
((Kevin.Buckland@thomsonreuters.com;))