Japanese Insurers Slowly Bring Capital Home
Japanese asset managers are expected to buy more domestic bonds as yields rise. While a massive repatriation of overseas assets is unlikely, gradual capital flows could support the yen.
Xurve View
Insights:
Xurve View
Japan's largest life insurers are shifting capital back toward domestic bonds as yields climb, though a wholesale repatriation of overseas assets remains unlikely. The gradual re-allocation comes as surging borrowing costs reshape portfolio math across institutional funds. Consistent domestic flows could provide underlying support for the USD/JPY, which touched a 40-year low in July.
