Oriental Marine and Fire Insurance in Seoul is looking to invest approximately USD50 million (GBP26 million) in credit-linked notes. J.K. Lee, general manager for investments, at the USD2 billion (GBP1 billion) insurer, said it is aiming to invest in CLNs with yields of over 6% to improve returns. Yields on five-year Korean bonds average only 4.5%.
The insurer's in-house investment team will oversee the move into credit-linked notes because it is familiar with the domestic credit market, said Lee.
The insurer last year considered investing in collateralized debt obligations that would guarantee the principal sum and generate yields of 6-7% (DW, 12/2). Lee said it has not yet invested in CDOs because it has not found any that meet its requirements.
