Unum CEO Says Junk Bonds ‘Too Hot’

Watjen says returns on high-yield not equal to risk; buys utility debt instead.

Unum Group Chief Executive Officer Thomas Watjen is shying away from adding junk bonds to the insurer’s investment portfolio after yields plummeted.

“There are times like now maybe where high-yield gets too hot,” Watjen, whose company holds about $40 billion of fixed- maturity securities, said today in an interview at Bloomberg headquarters in New York. “You just can’t get enough return in the sector to justify investing, given the risk parameters of that asset class.”

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