MEIJI YASUDA SAYS IT IS “ACTIVELY” CONSIDERING 40-YEAR BOND INVESTMENTS

Japan-based life assurer Meiji Yasuda said today that it was seriously considering the purchase of 40-year domestic government bonds to help offset its liabilities. Speaking yesterday in Tokyo, insurance investment department head Yasuharu Takamatsu said that the long duration of such bonds was useful for the management of liabilities. On November 6 Japan plans for the first time to issue ¥100bn ($852m) of 40-year bonds. The move follows the launch of 50-year bonds in the UK and France in 2005. Such instruments appeal to life assurers because the maturity period aligns with many of their liabilities. Meanwhile, Meiji Yasuda Life said that it planned to increase its domestic bond holdings by ¥30bn ($256m) in the second half of the financial year. The company said that it would also be increasing its holdings of residential mortgage-backed securities. Meiji Yasuda has total assets of $221.5bn.