Japanese institutional investors are increasing their holdings of bonds denominated in US, Australian and Canadian dollars as they seek to balance diversification and higher yields with stability.
Minako Endo, RBC’s managing director for Japan and head of institutional sales, told FinanceAsia in an interview that domestic pension funds, insurance companies and corporate treasuries are continuing to increase exposure to international debt instruments, particularly securities which are highly rated, such as so-called dollar-block bonds.
“We clearly see growing appetite for buying offshore bonds, partly as many of the big pension funds and institutional investors are seeking stable, alternative assets to generate higher returns,” said Endo....
