Markets, economy, stocks, growth, global, fixed income, international, asset classes
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.
In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
Implications for insurance capital requirements
This paper examines the U.S. commercial mortgage loan (CML) market and U.S. insurers’ investments in CMLs.