In November of 2008, the Federal Reserve, under the leadership of Chairman Ben Bernanke, announced it would begin a phase of monetary policy called “quantitative easing (QE).” The program involved the purchase of securities in the open market and was designed to have a stimulative effect on the U.S. economy by reducing market interest rates.
U.S. Investment Grade Corporate Credit; 7th Inning Stretch or Bottom of the 9th?
The corporate market has gone nearly full circle in the past decade, and investors find themselves in an environment that looks disturbingly similar to 2005-2006, with narrow spreads, compressed differentials across ratings, and rising event risk.
Emerging Markets: Perspectives on Russia and Poland
Since the closing of the 2014 Winter Olympics in Sochi, Russia, news from that region of the world has been dominated by the geopolitical unrest in Ukraine and Russia’s involvement in it. In light of the uncertainty that remains on how the crisis will play out on the world stage, this paper discusses the potential impact on Russia, Central and Eastern Europe (CEE).
The Importance of Risk Attribution
This paper begins with a background on risk attribution. Risk attribution is a rigorous approach to determining the overall impact of various sources of risk across all functions of an organization. Recent events have brought a heightened attention to risk and brought risk management to the forefront of insurer concerns.
Comparing Performance Metrics when Optimizing Investment Strategies
In this time of a difficult investment environment, as well as a heightened awareness of risk, insurers are looking to develop asset allocation strategies that will help them achieve their objectives.
Insurers and Hedge Fund Investing
The prospect of continued low interest rates and their adverse impact on investment income has forced insurers to look beyond traditional asset classes in their investment portfolios to other sources of total return to remain competitive.
Full House: Hold, Fold or All In?
The Great Recession left in its wake job losses, plummeting house prices and wealth destruction. Many homeowners decided to fold ‘em and, heeding the advice of The Gambler, run from their homes and underwater mortgages.
Master Limited Partnerships – Providing Energy & Income to Insurance Company Portfolios
MLPs were established by Congress in their current form to promote U.S. energy independence and much needed investment in energy infrastructure with the passing of the Tax Reform Act of 1986 and the Revenue Act of 1987. These acts developed the outline of the pass-through partnership and defined the requirements for eligibility, which stipulates that a business is required to generate at least 90% of its income from “qualified” sources such as crude oil, natural gas, petroleum products, coal, timber and other minerals.