As part of Societe Generale's series of Meet the Experts presentations, Roger Kim and Victor Gauvin discuss asset exchange.
Traditionally, insurance companies custodise their asset portfolios until maturity while generating additional revenue via short-term asset lending arrangements with their custodians. However, this is a suboptimal scheme as it reduces profitability and restricts the insurer from effectively investing the cash proceeds from lending out the assets. Societe Generale has an optimal approach to borrowing assets from insurers for longer term, from one year to five years or even longer. It offers considerable flexibility in asset class, trade format and tenor profile. This could effectively fit insurers’ needs from both profitability and asset/liability management-matching perspectives.
Register to watch the presentation Portfolio enhancement by secured financing, available for on-demand viewing
More on Insurance
Risk retention rules threaten to force firms to dump legacy assets
Fraught matching adjustment applications push more firms towards transitionals
Doubts on matching adjustment are causing insurers to change plans
Absence of cash metric under Solvency II puts capital constraints in spotlight
Sign up for Risk.net email alerts
Directional portfolios and limited diversification will hamper recovery process
Exchange plans to attract foreign money into India through enhanced technology
Systemically important status seen as business threat by asset managers
Recent Iosco consultation paper aims to better co-ordinate global regulation
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.