Private credit boom attracts Japan insurers

Costly affair: A pedestrian passing by the BoJ building in Tokyo. With the BoJ’s monetary policy out of sync with other major central banks, the yen has weakened and made the cost of hedging foreign bond investments prohibitively expensive. — AFP

JAPANESE insurance giants are shifting more of their US$2.6 trillion (RM12 trillion) in investment money to private credit, giving a further boost to the growing asset class.

Dai-ichi Life Insurance Co and Nippon Life Insurance Co are among companies that are seeking more investments in private credit, attracted to their floating interest rates as global borrowing costs jump.