Eurozone insurers eye CLNs as ECB easing hits bond yields

Dealers tout hybrid credit and equity-linked notes with Eurostoxx 50 exposure

Lionel Fournier - BAML
Lionel Fournier, Citi

In the space of a year, yields on 10-year French government bonds fell from 200 basis points to a record low of 54bp by the end of January, so it's no surprise French insurers are leading the search for alternatives to their huge - but suddenly low-yielding - sovereign bond portfolios.

That might sound easy enough, but any candidate must avoid the punitive capital burden associated with direct stock market investments under Solvency II, the new prudential regime for insurers that is due to take

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