Japan’s biggest insurer weighs riskier overseas CLO investments

Nippon Life Insurance, Japan’s biggest insurer, is considering increasing its exposure to collateralized loan obligations (CLOs) to potentially earn higher returns abroad. The company, which has been focusing on triple A-rated notes to minimize risk, is exploring the inclusion of double A-rated tranche investments if the former offers insufficient returns. This strategic move aims to balance risk and return in its global investment portfolio.