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.
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.
We raised the probability of Recession to 55% after virus-induced shocks, oil prices’ collapse and violent market volatility. We are de-risking, adding very high quality duration, while expecting credit markets to cheapen and reserve currencies to do well
Implications for insurance capital requirements
This paper examines the U.S. commercial mortgage loan (CML) market and U.S. insurers’ investments in CMLs.