Japanese life insurers are well-suited to weather long-term global turbulence as the coronavirus spreads, but certain investment strategies might turn sour, say rating agencies.
Korean securities companies will continue to supply domestic asset owners with new overseas alternative investments, but they are taking increasingly higher risks in the process.
Although new themes are emerging in portfolios, the overall risk approach remains fairly conservative, ratings agencies tell AsianInvestor.
The rating agency is appealing against sanctions imposed by the Hong Kong regulator for a negative report on Chinese companies. If the decision is upheld, price discovery will suffer.
Issuance in Formosa bonds has crashed following regulatory changes, but insurers still desperately need higher-yielding products to meet their obligations to policy holders.
Rating agency Moody’s says offshore renminbi bonds will be marginalised by the imminent China-Hong Kong trading link. Andy Seaman of Stratton Street Capital disagrees.