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.
Corporate Credit in 2013 – Where to Now?
Global Corporate Credit generated healthy absolute returns over 2009-12, with meaningful excess performance in 3 of 4 years. Currently, yields are hovering near record lows and spreads are tight. Looking forward, Conning believes corporate credit will outperform other conventional fixed income investment options, although we expect less robust returns than have recently been experienced. In this Viewpoint, Conning will identify risks and opportunities at the current stage of the corporate credit cycle, and highlight signposts that will aid investors in making decisions regarding portfolio positioning ahead of future market changes.
The U.S. Banking Sector – Poised to Perform Four Years After a Near-Death Experience?
In 2008-2010, the financial landscape was littered with failures and near-failures, regulatory-assisted mergers, illiquidity, rumors of the ”next” to fall, finger-pointing, and in retrospect, the Near-Death Experience of the United States banking industry.
“Movin’ on Up...” Emerging Markets’ Rising Importance in the Global Economy
While inclusion of some countries as part of Emerging Markets (EM) such as Israel and South Korea is debated, and there is no specific definition of an emerging market, the majority of the EM countries appear to fall in World Bank’s “upper middle income” and “lower middle income” categories, which are derived from GDP per capita as a metric.