Dutch insurers cut sovereign holdings after discounting switch
Government debt holdings of Dutch insurers have shrunk 2-5% as firms move to swap-based discounting of liabilities
Dutch insurers are fast-tracking plans to reduce holdings of long-dated, low-yielding government bonds after switching to swap-based discounting in the second half of last year.
According to investment managers, portfolios of sovereign bonds held by Dutch insurers have shrunk an estimated 2–5%, with investment redirected to short-dated debt and high-yielding alternatives such as mortgages and infrastructure.
The reallocation is driven partly by the opportunity to lock in profits in sovereign
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