Daiichi Life Group has been stepping into bankers¡¯ shoes and contacting companies directly to see if they want to issue bonds, in an unusual investment tactic for an insurer.
The Tokyo-based firm?¡ª?Â鶹´«Ã½ largest listed life insurance group?¡ª has been approaching dozens of companies that have never issued bonds or only rarely done so, proposing that it will become a core buyer if they tap the market, according to Kazuyuki Shigemoto, its managing executive officer.
Investors such as Shigemoto are looking for extra returns as Â鶹´«Ã½ benchmark bond yields climb to three-decade highs. One option is corporate debt that offers premiums over sovereign bonds. More issuance by weaker companies may attract foreign investors, who have long called on Japan to establish a junk bond market that offers higher yields in exchange for more risk.
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