Latest of the Japanese insurers to reveal strategy 7 Nov
- will curb investment in Japanese govt bonds and US treasuries with ccy hedging
- company is buying investment grade US corp bonds through funds
- these bonds have enough spreads to generate returns even after ccy hedging costs
- may buy US treasuries without ccy hedging when USDJPY falls back below 110 but sees a range of 114-118 at end March 2018
Sompo Japan, part of Sompo Holdings, manages about JPY 6trln, inc 1.6trln yen in domestic stocks.
USDJPY just running into a few sellers again and currently 114.09 from 114.16
