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‘Interesting opportunities’ for insurance sector in emerging markets

Bermuda's insurance sector could get a financial shot in the arm from debt in emerging markets, according to an HSBC expert.

Nathan Chaudoin, a New York-based specialist in emerging market debt at the global bank, said: “It's an asset class which is fundamentally sound in terms of profit and yield.”

He added: “We're here as part of an ongoing effort to promote interesting innovations to insurance clients in Bermuda and we see interesting opportunities today in emerging markets.”

Mr Chaudoin said market reversals earlier this year and the US Federal Bank's announcement last week that it would, contrary to expectations, continue to support the American economy as it recovers had clarified the importance of emerging market debt.

He added: “The investment opportunity is very clear for us now and that's what we're discussing with our clients this week.”

Mr Chaudoin explained that HSBC offered both mutual funds as well as separately-managed accounts, in both hard currency and local currencies.

The World Bank defines emerging nations as those with a per-capita income of less than $13,000 a year.

Mr Chaudoin said that, in the current economic climate, developed world markets were tough going.

But he added: “We see very interesting opportunities offered by the emerging markets, which are relatively sound compared to the developed markets.”

And he said: “It's being received very well — there is a very clear opportunity for emerging markets as opposed to developed markets, especially given the Fed's comments last month.”

Nathan Chaudoin, HSBC specialist in emerging market debt.

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Published September 25, 2013 at 9:00 am (Updated September 24, 2013 at 7:19 pm)

‘Interesting opportunities’ for insurance sector in emerging markets

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