Asian insurers turning to alternative credit

A perfect storm of monetary easing in Asia and Europe, expected US interest rate rises, lower bond yields and stricter solvency rules is playing havoc with insurance companies’ investment portfolios. The effect of quantitative easing (QE) in supporting equity markets and pushing down yields on bonds has given insurers and other liability-driven investors a major headache. With such a dramatic change in their earnings profile, these investors have been forced to alter their strateg…