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Insurers in Europe are raising capital from subordinated bond markets to strengthen themselves ahead of regulatory moves, reports Reuters.
Insurers have been charging into the market as they are looking to bolster capital at rock-bottom yields before being forced to sell more aggressive structures under Solvency II regulations.
Robert Montague, senior investment analyst at ECM Asset Management Ltd., said that in case of subordinated bonds, "the less loss-absorption language the better."