This paper examines the U.S. commercial mortgage loan (CML) market and U.S. insurers’ investments in CMLs.
Since the financial crisis, for a relatively liquid investment CLOs consistently have had the highest spreads net of capital costs for US life insurers.
A preliminary analysis
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.
Market downturn, bear market