The slump in U.S. corporate bonds is likely to spur bargain hunting by Taiwan life insurers.
The largest insurer by assets in Taiwan, Cathay Life Insurance, has already stepped into the market.
“We have bought U.S. investment grade long-tenor corporate bonds on dips in March, as credit spreads widened a lot,” said Abel Lin, managing senior executive vice president at Cathay Life. “We will continue to add such bonds.”
Cash at local insurers had grown following a wave of redemptions and as the firms held their firepower amid plunging yields before the coronavirus outbreak hammered assets worldwide. Taiwanese life insurers had NT$785 billion ($26 billion) of bank deposits at the end of January, the most since 2012, according to data compiled by Bloomberg.
Abel Lin, managing senior executive vice president at Cathay Life 林昭廷 出生:1968年 現職:國泰人壽副總經理(負責7大部室:數理部、精算部、會計部、外匯管理部、財務企畫部、營業企畫部、投資型商品部) 學歷:台大數學所、台大財務金融研究所博士班 經歷:國泰人壽投資部協理、國泰人壽精算部