In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
Trade policy is of first-order importance in a more connected world, and markets have been reacting nervously to U.S. trade disputes.
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.
Themes and implications from the Global Fixed Income, Currency & Commodities Investment Quarterly
What investors should consider
The key political, macro and credit risks that insurers may want to address in 2019.