Theme 1:
The expanding universe of
fixed-income instruments
The quest for greater yield in the recent low interest rate
environment, coupled with a desire to diversify credit risk
exposures, has increasingly led insurers to explore a wider
universe of fixed-income instruments.
Historically, insurance company fixed-income portfolios were mainly
invested in government bonds and investment-grade corporate bonds
issued in developed countries.
But the quest for greater yield in the recent low interest rate
environment, coupled with a desire to diversify credit risk exposures,
has increasingly led insurers to explore a wider universe of fixed-income
instruments.
Against this backdrop, the impact of post crisis regulatory reform has
also become increasingly visible in the market. The immediate aftermath
of the crisis saw structu ɕ