The extent to which insurers in the European Economic Area (EEA) invest in a range of investment funds – significantly ahead of government bonds – is revealed in the latest data snapshot published by the European Insurance and Occupational Pensions Authority (EIOPA). It also exposes the reluctance of insurers scross the continent to plough investments into infrastructure.
Corporate bonds are a well-established part of the investment universe for insurers and pension funds but is this asset class starting to give rise to concerns about the risks it might pose?
The Bank of England has been expressing quiet satisfaction about its quantitative tightening (QT) programme. It is on course to reduce the stock of gilts held in the Asset Purchase Facility by 11.6% by the end of the first year of the programme in September.