Korean insurers shun structured notes ahead of IFRS 9
Prospect of earnings volatility blamed as big buyers of notes turn to less exotic assets
Insurance companies in South Korea are cutting back on purchases of structured notes, ahead of the introduction of accounting standards that make the products a source of earnings volatility.
Individual insurers are estimated to have sunk as much as 20% of their assets into structured notes, as they sought to beat the returns on offer in traditional bond portfolios. Now, the sector is switching
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