NAIC cracks down on risky feeder funds

Vehicles have been used by insurers to invest in ‘weird and wonderful’ assets, say practitioners 

aerial view of streams feeding into a river delta

US insurance regulators are moving to stamp out a loophole exploited by some insurers to invest in risky assets such as private equity while minimising capital charges. 

So-called feeder funds, also known as rated feeder notes, are often used by insurers as a capital-efficient way to invest in assets like private debt. But some insurers have been using the funds to invest in riskier assets, too. 

A proposal from the National Association of Insurance Commissioners (NAIC) due to come into force in

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net 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