Japan’s huge insurance company, Japan Post (Kampo) is loading back up on short-term Italian debt
Kampo’s CIO has been out today saying they are reloading on Italian debt. Before the March elections they had sold some two thirds of their holdings and we’re left with around 1% of their total assets in Italian bonds (some $644m). Now they’re back buying short-term paper as they see a bargain with the volatility driving down the prices. Now the news is public, they’ve probably already done the bulk of their buying anyway. They’re a savy bunch and won;t be giving a free lunch to anyone.
Kampo is one of the biggest Japanese investors and has over $700bn in investments. When these guys move, the market moves. Reuters has more details here.
It looks like they’ve grabbed a good trade as Italian yields continue to fall as the fear of a political mess (more than what it is now) lessens.