UK insurers recoupon interest rate swaps in bid to enhance yield

Stock market performance

UK insurers are renegotiating their in-the-money interest rate swaps to release cash to invest in higher-yielding assets and reduce the cost of servicing collateral, according to market participants.

Insurers holding fixed receiver swaps entered into when interest rates were high have seen the mark-to-market value of these positions rocket in recent years as rates have plummeted. At the same time, falling rates have reduced the yield insurers can achieve on the asset portfolio.

Shazia Azim, a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: