Asian insurers look to high-yield assets – BlackRock

Insurers in Asia are turning to higher yield and less liquid assets in order to enhance absolute returns, preparing for Fed tapering in 2014, according to a global insurance survey.
To better prepare for the end of US quantitative easing in the next one or two years, 70% of Asian insurers said they will cut portfolio duration to reduce their interest rate risk.
To better prepare for the end of US quantitative easing in the next one or two years, 70% of Asian insurers said they will cut portfolio duration to reduce their interest rate risk.

Asian insurers are more active than their western counterparts in preparing for the end of quantitative easing policies and are looking to diversify into higher yielding and less liquid fixed-income assets, boosting absolute returns as bond yields continue their upward trend.

To better prepare for the end of US quantitative easing in the next one or two years, 70% of Asian insurers said they will cut portfolio duration to reduce their interest rate risk, while 60% said they will move away from benchmarks to adopt more absolute return strategies, according to the world’s largest money manager BlackRock.

For a longer horizon over the next three years,...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222