Reported 8 months ago
Japanese life insurers have decreased their protection against a strengthening yen to the lowest level in ten years and may further reduce these positions in the upcoming months. This decline in hedging indicates their belief that the yen will either weaken or, if it strengthens, it won't impact foreign investment gains significantly. Factors such as yield differentials, interest rate outlook, and capital outflows are influencing their decision, with many insurers opting to hold or decrease foreign bonds without currency hedging.
Source: YAHOO