Japanese lifers boost FX hedging as new capital rules loom

- Alice Shen
- 05 Feb 2021

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Japanese life insurers have increased adoption of cross-currency swaps and longer-dated Japanese government bonds (JGBs) in preparation for a new capital regime. The insurers are seeking to reduce their market risk in an attempt to attract lower capital requirements before the new rules come into force in 2025.

“We estimate that Japanese life insurers increased the USD/JPY hedge ratio by over 10% in the last two years,” says Yusuke Ochi, executive director in rates structuring and strategies

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to print this content. Please contact customer services - www.fx-markets.com/static/contact-us to find out more.

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@fx-markets.com

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@fx-markets.com