Reuters citing Fitch Ratings

  • Japanese life insurers are raising their exposure to foreign bonds steadily but cautiously
  • Fitch believes the insurers are buying modest volumes of domestic bonds - especially long-term Japanese government bonds (JGBs)
  • The Bank of Japan's actions contributed to a moderate yield-curve steepening, but the current bond yield is not yet steep enough for life insurers to accelerate their buying of domestic bonds
  • Fitch sees a gradual accumulation of foreign-currency bonds in their portfolios, in the search for yield.
  • believes the investment in foreign bonds is quite cautious; the focus is mainly on short-duration bonds (around five years) in order to avoid excessive interest-rate risks

I'll see if I can find a link for more