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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (83159)	8/21/2000 6:00:12 PM
From: Earlie	Respond to of 132070

Davidd The insurance companies are owners of tons of Japanese government bonds, issued over the past few years. Interest rates going up on new issue bonds will reduce the selling price of the old bonds. This hurts the insurance company balance sheets. Japanese insurance companies are already in trouble due to that country's demography (relatively aged population). Many of these companies are concerned as to how they will meet their obligations (maturing policies). If they survive, higher interest rates on bonds will eventually help their cause, but for the present, it provides a bleak scenario. Best, Earlie