Meiji Yasuda to boost unhedged foreign bonds in 10/11

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TOKYO, April 14 (BestGrowthStock) – Japan’s Meiji Yasuda Life
Insurance Co said on Wednesday it plans to boost its unhedged
foreign bond holdings by 300 billion yen ($3.22 billion) in the
financial year that began on April 1.

The nation’s third-largest life insurer by assets also said
at a news conference that it would cut its hedged foreign debt by
200 billion yen due to rising hedging costs, with the prospect of
interest rates being hiked in the United States earlier than in
the euro zone or Japan.

The company added that it would increase its holdings of
domestic bonds by a net 1 trillion yen in the 2010/11 financial
year.

Meiji Yasuda manages 24.3 trillion yen of assets on behalf of
policy holders, of which 6 percent was invested in foreign bonds
at the end of March 2010.

Japan’s top nine insurers held around $1.6 trillion in assets
as of September 2009 — nearly the size of Brazil’s economy —
and their investment moves are followed closely by both domestic
and overseas market players.

The insurers, with about $163 billion of foreign bond
holdings in total, are watching for when U.S. interest rates
start to rise, a change which would push up foreign bond hedging
costs and could lead to more Japanese government bond buying.
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($1=93.20 Yen)
(Reporting by Satomi Noguchi and Yuka Obayashi)

Meiji Yasuda to boost unhedged foreign bonds in 10/11