AsianInvesterAsianInvesterAsianInvester

Japanese institutions tilt back to JGBs

Heather Ng
Rising Japanese government bond (JGB) yields drive institutions to reinvest at home, trimming foreign debt and cautiously adding alternatives.
Japanese institutions tilt back to JGBs
Key Points
  • Investors are swapping low-coupon legacy bonds for newly issued, higher-yielding JGBs.
  • Rising domestic yields and higher hedging costs are dampening the appeal of US Treasuries and high-grade foreign corporate bonds.
  • Insurers and pension funds are slowly increasing alternative asset allocations through partnerships with global managers.

Japanese institutional investors are steadily recalibrating their fixed income strategies as rising domestic yields reshape the investment landscape. Insurers and pension funds are keeping JGBs at the core of portfolios but shifting allocations in measured ways.

Sign in to read on!
Registered users get 2 free articles in 30 days.

Subscribers have full unlimited access to AsianInvestor

Not signed up? New users get 2 free articles per month, plus a 7-day unlimited free trial.
If you are a senior professional at a large institutional asset owner, such as a sovereign wealth fund or pension fund, please contact [email protected] for further assistance.

Questions?
See here for more information on licences and prices, or contact [email protected]
¬ Haymarket Media Limited. All rights reserved.