Insurance companies chase riskier ABS assets

By David Bell
11 Apr 2018

Life insurance providers maintained their holdings of securitized products at a steady level last year, but many have rejigged portfolios to target higher yielding, riskier asset classes, a report from Wells Fargo said on Wednesday.

The volume of bonds held by life insurance companies rose to $2.82tr in 2017, up from $2.71tr in 2016, wrote Wells Fargo analysts on Wednesday, but as a proportion of overall holdings bonds have declined for eight successive years, they added.

The increase in bond holdings has largely ...

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