Euro Insurers Switch Negative Yields for Emerging Debt

European insurers are snapping up more emerging-market debt, spurred on by worries that negative-yielding bonds in Europe might not offer enough returns to meet their future payments, the International New York Times reported on a Reuters story. The move represents a shift for investors, who have usually filled much of their portfolios with high-grade bonds issued by developed-market governments and companies. An estimated 250 billion euros, or around 5% of European insurers' assets, are invested in fixed income, up from 2% to 3% five years ago, said people at several insurers. Signs of the shift can be seen in their participation in recent euro-denominated debt issues by countries like Ukraine, Indonesia, Saudi Arabia, Romania, Croatia, Serbia and Egypt. Read more

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