Prudential’s Thiam sees Asian infrastructure deals as ALM panacea; 340,000...
Increasing numbers of infrastructure deals in Asian markets may help insurers meet their long-term liabilities, according to Prudential’s group chief executive.
View ArticleYen interbank funding market calm as government bond yields retrace
The reduced scale of hedge fund carry trade activities compared with previous crises such as the collapse of Lehman Brothers in 2008 has reined in potential increases in the yen libor rate and...
View ArticleTakaful presents unique ALM challenge for insurers in Asia
The takaful market presents unique challenges to the insurance industry, but the rewards up for grabs are huge given its potential size. How are insurers managing their assets and liabilities in the...
View ArticleFSA urged to take direct action against liquidity swap ‘malpractice’
The British Bankers' Association (BBA) has called on the FSA to pursue individual cases of liquidity swap ‘malpractice’, rather than imposing new industry-wide regulations on the transactions
View ArticleChinese sovereign wealth funds should dump US stocks, report says
Chinese sovereign funds such as Safe Investment Company and CIC should consider dumping and even shorting US retail stocks during US economic downturns, if they want to adopt an integrated asset and...
View ArticleInsurers await Solvency II clarity for asset allocation
The impact of Solvency II on asset allocation decisions is hard to predict, particularly since the rules are not yet finalised, but two recent papers suggest that if a company wants to limit its...
View ArticleInflation estimate errors costing defined benefit sponsors £50 billion
Overestimated inflation projections could be costing UK defined benefit scheme sponsors more than £50 billion in unnecessary funding commitments, a corporate adviser warns
View ArticleInsurers look to hedging strategies to deal with management charge volatility
Volatility caused by annual management charges under Solvency II is a relatively new issue for insurers. What are the hedging techniques being undertaken to manage this?
View ArticleMarket-consistent equity risk premiums
The capital asset pricing model used to determine excess return for a given risk level and allocate assets typically uses historical data, which can be a poor predictor of risk. By adapting the model...
View ArticleSolvency II asset charges will not stop insurers funding banks
Solvency II is expected to lead to changes in insurers’ investment strategies. Janko Gorter and Melle Bijlsma argue that the effects on the financial markets and the real economy may not be as...
View ArticleMarket unrest prompts caution over commodities as diversifying asset class
Life insurers and pension funds have been using commodities as a portfolio diversifier for years. Blake Evans-Pritchard reports on how the asset class is evolving
View ArticlePerturbed Gaussian copula: introducing the skew effect in co-dependence
Gaussian copula models are often used in the industry when single-asset information is quoted but little is known about their joint relation. These models may arise from correlated stochastic Brownian...
View ArticleCash-rich insurers eye loan books of de-leveraging European banks
High-quality portfolios could provide attractive long-duration assets, say bankers
View ArticleLow risk, high return: getting the most from a low risk asset strategy
Market volatility has made life insurers and pension funds wary of credit risk, but yields on safer assets remain disappointing. Blake Evans-Pritchard reports on ways of bettering the return while...
View ArticleInsurers look to social housing to diversify asset mix
With banks pulling out of social housing and governments slashing grants, could pension funds and life insurers fill the emerging void? Blake Evans-Pritchard reports
View ArticleRegulatory change will enable China insurers to reduce their asset-liability...
China insurers now allowed to invest in hybrid, convertible bonds and infrastructure asset and real estate
View ArticleSponsored statement: Moody's Analytics
Asset and liability management (ALM) is in transition. But how will it evolve? A snapshot of the inflection point and the top strategies for developing next-generation balance-sheet solutions
View ArticleMove to swaps discounting presents ALM challenges for with-profits funds
The move to discounting liabilities using swap rates under Solvency II will present challenges for UK with-profits funds that have been used to matching cashflows using gilts. Against the backdrop of a...
View ArticleInsurers to target export finance loans as banks withdraw
Sovereign-guaranteed loans provide yield boost for insurers
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