Prudential Life Insurance's Taipei branch is considering upping its use of credit-linked notes by year-end for its TWD4.5 billion (USD132 million) domestic fixed-income portfolio. Vincent Wen, portfolio director in Tapei, said the insurer will invest in two or three investment-grade notes by year-end if the yield is attractive. Wen continued that the insurer invested in four credit-linked notes earlier this year, though the majority of its portfolio is invested in domestic and foreign bonds. For credit-linked notes, the insurer prefers dollar-denominated structures on global names that it does not have access to in the bond market. The typical size is around USD2 million per note.
"We're speaking with several of the big names," said Wen, declining to cite specific potential counterparties. Deciding factors for investments include pricing and the amount of yield offered. Prudential came onshore in Taiwan in 1999, with the acquisition of Chinfon Life Insurance Co.
