In lower cost, liquid vehicles, alternative risk premia strategies can strengthen a risk-return profile.
In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
A summary of the factors driving global markets over the last month.
Reaching for yield, which we define as buying bonds with wider spreads after controlling for sector and rating impacts, is a topic that frequently arises in the life insurance industry.
What investors should consider
The key political, macro and credit risks that insurers may want to address in 2019.
Bond yields remain at or near historic lows around the world, leading to a substantial increase in the value of pension plan liabilities.
David Kelly, the Fed, interest rates