Insurers explore exchange-traded funds to boost yield

Exchange-traded future

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Insurers need to venture further afield in the hunt for yield. With the developed world locked in a depressed interest rate environment, investment teams are increasingly turning to emerging markets to secure a decent income. However, tapping into the wealth generated in these regions in a safe and sustainable way is challenging. Emerging market debt is highly illiquid and equities unnervingly volatile.

Insurers are also looking to put their cash balances to