This paper examines the U.S. commercial mortgage loan (CML) market and U.S. insurers’ investments in CMLs.
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
As corporate profit growth has slowed, we have a more balanced outlook on equity markets. Valuations are mostly well within historical norms and we’re seeing opportunities among higher growth companies with sustainable profits and cash generation.