Markets, economy, stocks, growth, global, fixed income, international, asset classes
In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
While tariffs remain a concern, the key issue is the degree—which we deem moderate—of U.S. recession risk. The current global backdrop makes the U.S. dollar unlikely to strengthen. Earnings growth expectations are modest, valuations are undemanding
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.
Implications for insurance capital requirements
This paper examines the U.S. commercial mortgage loan (CML) market and U.S. insurers’ investments in CMLs.