Life insurers in Taiwan are issuing a record amount of subordinated bonds to improve their finances before a new 2026 accounting system deadline. So far in 2024, seven major insurers have sold USD2.4bn in subordinated notes, which are riskier for investors as they rank below other debts in bankruptcy claims. They plan to issue a total of NTD158bn (USD4.9bn) this year. These long-term bonds, permitted since April 2023, are popular for their higher yields compared to Taiwan’s low-yield fixed-income market. Investors include government funds, financial institutions, and high-net-worth individuals. However, the bonds’ thin liquidity poses risks for those needing to sell before maturity. Despite these risks, a significant wipeout like Credit Suisse’s AT1 bonds is unlikely due to strong local bank finances.