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
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.
Markets, economy, stocks, growth, global, fixed income, international, asset classes
Join us this week as Global Market Strategist, David Lebovitz discusses the latest insights on economic growth, the Federal Reserve and whether stocks vs bonds are right for your current asset allocation.
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