Month: July 2018
#112 | Indexed UL in the Mirror – Part 4 – The Bright Future of IUL
Like any fad that gets too big and too fast, the changing of the epoch will force Indexed UL to shrink, trim and mature. Expect to see material product changes to offset a rising interest rate environment such as "new…
#111 | Indexed UL in the Mirror – Part 3 – Volatility Skew
All capped account options in Indexed UL products are hedged by buying a call option at the floor and selling a call option at the cap. As it turns out, the implied volatility for those two options can be markedly…
#110 | Indexed UL in the Mirror – Part 2
Evidence is starting to mount that the epoch so beneficial to Indexed UL has ended. 12 Month LIBOR, a proxy for the rate embedded in the price of call spreads, has jumped from 0.75% in 2015 to a current rate…
