Macro Commentary

#211 | The Emerging Credit Event

Although most of the attention in the media has focused on the impact of the response to COVID-19 on equities, the proper functioning and pricing of credit is far more important for life insurers. The last two weeks have seen…

#208 | Taking Stock of the TNX

Although the public and the media are completely fixated by COVID-19 and the dramatic oscillations of the equity markets, we insurance folks are watching a different metric – the 10 Year Treasury yield (TNX). Since February 20th, the S&P has…

James Christie | Here We Go Again – With A Twist

The story currently playing out in the bond and equity markets seems eerily similar to what we saw in 2008 and 2009. Significant volatility in the equity markets combined with declining interest rates and rate actions by the Fed. In…

#205 | Charting New Territory

The market turmoil over the last week might not be unprecedented in and of itself, but it is producing some unprecedented results – and not in a good way for fixed and indexed insurance products. While equity drawdowns are obviously…

#179 | Life Insurers in a Vice

Back in the day, folks used to say that if you wanted to know if life insurers were under yield pressure, all you had do was look at the 10 year Treasury. That’s no longer the case. A decade of…

#59 | Low Rates and Life Insurance

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#22 | Portfolio Crediting Physics

[et_pb_section fb_built="1" _builder_version="3.0.90" custom_padding="0px|20px|15px|20px"][et_pb_row custom_padding="15px|0px|27px|0px" _builder_version="3.0.47" background_size="initial" background_position="top_left" background_repeat="repeat"][et_pb_column type="4_4" _builder_version="3.0.47" parallax="off" parallax_method="on"][et_pb_text _builder_version="3.0.91" header_font="||||||||" header_2_font="||||||||" background_size="initial" background_position="top_left" background_repeat="repeat"]Everyone knows that the probability of a life insurance policy performing exactly as illustrated is zero – and rightfully so. A life…