Asian institutional investors struggle to cope with long-term debt

Rising interest rates are a big concern.

The region’s biggest investors are worried about their ability to meet their long-term debt. According to a survey released by Natixis Global Asset Management, 55% of Asian institutional investors expect some or significant difficulty meeting their long-term liabilities over the next few years

Managing uncertain liabilities linked to increasing longevity seems to be the greatest struggle among Asian institutions as 83% expect difficulty in this over the next three years – the highest compared to other regions.

The survey showed that nearly two in three (60%) are moving from long to short duration bonds in anticipation of rising interest rates and 50% are reducing their exposure to fixed income.