In 2025, insurers and pension funds redirected their investment flows to benefit from the increase in long term interest rates

Bulletin No. 266, article 3. In 2025, insurers and pension funds redirected their investment flows into debt securities and non money market collective investment undertakings (CIUs), at the expense of money market instruments and directly held equities. This reallocation took place amidst falling key interest rates and rising long term rates, which boosted the attractiveness of long term bond investments. The renewal of bond portfolios continued apace, leading to an increase in yields. Portfolios remain predominantly invested…