Dai-Ichi Life Sees JGB Market Volatility Declining (1)

The surging bond yields that have saddled Japan’s insurers with billions of dollars in unrealized losses will weaken because they are not supported by economic fundamentals, according to Dai-ichi Life Holdings Inc., the country’s largest listed life insurer.

Tetsuya Kikuta

Source: Source: Dai-ichi Life Holdings

New buyers are entering the market for Japanese government bonds and amplifying volatility, Chief Executive Officer Tetsuya Kikutasaid in an interview. Yields on 30-year JGBs jumped to a record last week. This is eroding the value of the bonds already in the insurers’ portfolio. Dai-ichi’s paper losses on its domestic bonds stood at about ¥2 trillion ($14 billion) as of ...