The Japanese are heavy investors in US Government securities and are apparently going to have to repatriate a great deal of those funds. If that happens, that would seem to drive interest rates up, and bond prices down.
Given that insurers hold a lot of those bonds, I would think that carrier surpluses would be eroding not just from losses but from deteriorating asset values. I don’t see any discussion of that in the assessments as to whether or not this is a market turning event.
The Japanese are heavy investors in US Government securities and are apparently going to have to repatriate a great deal of those funds. If that happens, that would seem to drive interest rates up, and bond prices down.
Given that insurers hold a lot of those bonds, I would think that carrier surpluses would be eroding not just from losses but from deteriorating asset values. I don’t see any discussion of that in the assessments as to whether or not this is a market turning event.
Or am I mistaken?